Oil price subsidy in Thailand raises concerns.

(From Thai Press Reports)

Section: Commentary - Ever since the accumulated oil subsidy bill touched Bt50 billion, many parties - especially manufacturers - have repeatedly expressed concern about the impact on the economy once the subsidies are lifted completely, The Nation reports.

That scenario started to come true with Tuesday's Bt0.60-per-litre hike in the price of diesel. The sudden increase, coming from nowhere, set everyone fretting about rising manufacturing costs, transportation costs and, eventually, product prices.

The move drew quick responses from those affected. A parade of pickup trucks visited petrol stations across the nation on Monday night, filling up before the diesel price went up - something they didn't need to bother about before.

Likewise, the Express Transportation Organisation of Thailand (ETO) yesterday unveiled a measure to reduce its consumption of diesel, which totals about 900,000-1 million litres each month. The Bt0.60-per-litre increase thus adds more than Bt500,000 to its monthly costs.

Arak Ratboriharn, acting director of the state enterprise, said the ETO would use more six-wheeler trucks rather than 10-wheelers, which consume more fuel.

It seems a bit ridiculous that this decision was taken only after the diesel price hike. With subsidies in place since January last ...