Friday, September 30, 2022

Thai Energy Usage to Exceed 2021 Amid Higher Economic Activity

BANGKOK (NNT) – Energy usage increased during the first quarter of this year following the lifting of various pandemic restrictions and as the Thai economy continues to recover. The Energy Policy and Planning Office (EPPO) expects all types of energy use to be higher this year, with a 12.9% increase forecast for oil usage.

EPPO Director-General Wattanapong Kurovat said final energy consumption in the commercial sector was up by 9.2% in the first quarter of 2022, adding that lignite usage in the industrial sector saw a noticeable uptick.

Initial energy demand in the commercial sector declined by 0.8% due to reduced usage of liquified natural gas in power generation. Wattanapong also noted power plants have switched to using fuel oil and diesel oil to generate electricity. The move came in response to the government slashing to zero the excise on fuel oil and diesel used for electricity generation. This measure will remain in effect until September 15 and is aimed at reducing the overall cost of generating electricity.

The EPPO expects oil consumption to increase by 12.9% this year due to disease control restrictions being further lifted. The office predicts that coal/lignite use will increase by 6.8%.

Wattanapong acknowledged that the current high price of oil is partly related to the refinery margin, which stands at about 5 baht per liter. He said retail oil prices could be lowered if refineries reduce their margins, adding that the refinery margin should be about 2 baht per liter.

Information and Source

Reporter : Natthaphon  Sangpolsit

Rewriter : Paul Rujopakarn

National News Bureau :

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