Latest news with #Pirapan
Bangkok Post
2 days ago
- Business
- Bangkok Post
Cheaper power bills seen on the horizon
The prices of electricity bills will become slightly cheaper during the last four months of the year as authorities have agreed to decrease the power tariff by 0.03 baht per kilowatt-hour (unit), says Energy Minister Pirapan Salirathavibhaga. The current power tariff, used to calculate monthly electricity bills, is 3.98 baht a unit, and is applicable until the end of August. The latest reduction followed recent talks held between the Energy Ministry and the Electricity Generating Authority of Thailand (Egat). Mr Pirapan did not elaborate on the reasons behind the lower tariff, saying it is broadly related to cheaper liquefied natural gas (LNG), a key fuel for the nation's power generation, and financial management. "The price of imported LNG is trending downward and authorities can help Egat deal with financial issues," he said. China's decision to reduce LNG imports, partly resulting from its move to increase domestic natural gas production, plays a key role in easing supply pressure on other Asian nations. LNG prices in the Asian spot market fell to US$11 per million British thermal units (BTU) in May, down from $16.5 million BTUs in February, according to online energy news website Part of the price of electricity bills is required to reimburse Egat and national oil and gas conglomerate PTT Plc for their past electricity price subsidy programmes during a surge in LNG prices. Egat runs a loss of 66 billion baht while PTT shoulders a financial burden of 15 billion baht. The need to pay back money to Egat and PTT is one major reason behind expensive electricity bills, although, according to the Energy Regulatory Committee (ERC), gas prices, including LNG, are likely to decrease during the final four months of 2025. The ERC earlier set the minimum power tariff from September to December at 3.98 and offered another two options — rates of 4.87 and 5.10 baht — for people to choose from during its online public consultation during July 17-28. The higher the power tariff, the quicker money can be repaid to Egat and PTT.
Bangkok Post
05-07-2025
- Politics
- Bangkok Post
Sailing to destruction?
Sailing to destruction? The beleaguered United Thai Nation (UTN) Party could be heading for disintegration after the next general election for what it has done to supporters, according to critics. The ultra-conservative party -- whose leader Pirapan Salirathavibhaga was catapulted to instant stardom in the eyes of UTN supporters for having inherited former premier Gen Prayut Chan-o-cha's political "DNA" -- is in an almost unsalvageable state. Its reversal in fortunes has happened almost overnight. It started with the leaked audio clip in which Prime Minister Paetongtarn Shinawatra was heard pleading with Cambodia Senate president Hun Sen to help her out of a personal predicament after being bombarded with criticism for being too soft on Cambodia amid the border dispute. The premier also labelled the 2nd Army Region commander in charge of the military area along the lower northeastern border with Cambodia as an "opponent". She also offered to return the favour if Hun Sen agreed to help her. The recording, allegedly leaked by the Cambodians, sparked outrage in Thailand and calls for Ms Paetongtarn to step down as premier. However, when it became apparent Ms Paetongtarn was not throwing in the towel, attention turned to coalition parties. Many of their supporters, particularly those in the conservative camp, demanded they immediately withdraw from the Pheu Thai-led government. To their disappointment, parties like the Democrat Party and Chartthaipattana announced they were staying put, reasoning it would be a disservice to the country if they abandoned the administration at a politically volatile juncture. The UTN was the only party reported to have resolved to issue Ms Paetongtarn an ultimatum: resign as prime minister over the leaked audio clip, or the UTN would leave the government. However, the party never got around to officially issuing such an ultimatum, leaving people wary of the UTN's true intentions. When approached by reporters, Mr Pirapan refused to speak about any resolution, saying he had been instructed by the party to convey the matter directly to the prime minister and not to the media. Meanwhile, Ms Paetongtarn, who on Tuesday was suspended by the Constitutional Court from prime ministerial duty pending deliberation of the ethical violation case stemming from the leaked audio clip, denied any knowledge of a UTN ultimatum pressuring her to quit. The development has split the party even further following a rift which effectively cut the UTN into equal halves, each with 18 MPs. It was reported that one faction was being wooed to defect to a new outfit funded by an energy conglomerate. The remaining faction with Mr Pirapan and UTN secretary-general Akanat Promphan at the helm has been emasculated by the internal rivalry. The Pirapan faction in particular looks to have been further weakened by continuing to back the Paetongtarn government. Support within the group is ebbing away as loyal members have contemplated turning their backs on the party. "It's looking quite grim at this point. It's a split within a split," a source familiar with the issue said. Finding himself in the firing line from supporters who had counted on the UTN quitting the coalition, Mr Akanat, who is also the industry minister, affirmed the party will remain part of the coalition despite the internal and external challenges. Speaking after a recent party meeting, Mr Akanat said Thailand is in a fragile state and a functioning government is essential to navigate the current crisis. "Being in politics this long, I can tell when the situation is at its worst. Decisions are never easy. "We constantly talk within the party.... With battles going on both inside and outside the party, we must come together and assess developments," the UTN secretary-general said. In response to suggestions that the party remain in government but push for a new prime minister, Mr Akanat acknowledged there had been calls from supporters for the party to take a firm stance and show accountability. "We have ongoing discussions. This is a turbulent time -- border tensions, trade disruptions, and international pressure from the US and Iran on oil. The government is needed now more than ever." He compared the situation to a ship in a storm: "I am the captain of this ship. If I abandon it now, everyone on board will go down with it. It's a hard choice, but I must stay and steer it through." On reports of founding UTN members resigning in protest against the party's decisions, Mr Akanat said: "We must take responsibility. Supporters can step away, but as the leader, I cannot. It's not an easy path." Mr Akanat admitted he is not confident the UTN can regain public trust after this. "But I understand the doubts. I won't hide from them. I'm being honest," he said. He also clarified that the party has not yet committed to fully backing the government in the long term. "I understand the feeling. But if we don't have a government while the military is engaged at the border, or while we're dealing with trade negotiations and energy shortages -- then what would we have? My duty is to continue," he said. On the issue of cabinet positions, Mr Akanat made it clear he has no intention of seeking more power. "We've never thought about quotas. The only decision was whether to stay or go. If someone wants my position, they can take it. I'm not attached to titles. I'm still young, and I want to continue in politics -- but based on principles." He concluded by highlighting the party's ongoing initiatives: "Just the other day, our team [at the Industry Ministry] cracked down on a modern trade scam. If I weren't still here, who knows what direction things might've taken? I'll give my best for as long as I can." Playing for more time Although the Constitutional Court voted 7–2 to suspend Paetongtarn Shinawatra as prime minister pending its ruling over a leaked phone call she had with Cambodian Senate President Hun Sen, she is expected to remain active in the new cabinet. The suspension order came hours after the Royal Gazette published the official announcement of the new cabinet, in which Ms Paetongtarn was appointed culture minister. By brushing aside calls for her to step down as prime minister and doubling as the culture minister, political observers see this as a calculated move by her father, Thaksin Shinawatra, widely regarded as the de facto leader of the Pheu Thai Party, to help save face for his daughter and maintain the party's grip on power for as long as possible. The move will buy time for the ruling party to pursue its political agenda, including going after the so-called blue-camp senators and the Bhumjaithai Party, which earlier quit the coalition following the leaked audio clip. After nearly two years in office, the Bhumjaithai Party may have left behind skeletons that Pheu Thai can use to weaken its key rival ahead of the next general election, according to observers. Stithorn Thananithichot, director of the Office of Innovation for Democracy at King Prajadhipok's Institute, said the Paetongtarn administration remains in place because the conservative bloc sees little to gain in forcing Pheu Thai out. The conservative camp cannot afford to make more enemies and still needs Pheu Thai to contain the rising influence of the main opposition People's Party (PP), according to Mr Stithorn. A House dissolution is also not an option because the current political turmoil stems largely from Ms Paetongtarn's lack of experience. Furthermore, a snap election would only benefit the PP while the coalition partners would likely lose even more ground. Although the Pheu Thai-led government is languishing, the coalition has so far managed to keep the PP from rising to power, said Mr Stithorn. "The old power clique believes Pheu Thai can't be allowed to collapse, as doing so would make it harder to control the game. "Right now, it's about buying time. With public support at its lowest point, Pheu Thai also knows it doesn't have much time," he said. According to the analyst, Pheu Thai's focus, for now, is to make the most of the power the Interior Ministry holds and assert control over as many constituencies as possible through administrative organisations in the ministry's network before a likely House dissolution predicted to take place later this year. The Interior Ministry, which oversees provincial administrations and controls a vast bureaucratic network, plays a central role in implementing policies and thus directly influences voter support. "The goal is to return to power after the next election and continue holding off the PP," said the analyst. On the legal front, Ms Paetongtarn has 15 days to submit a written explanation to the Constitutional Court. Legal scholar Jade Donavanik said the judicial review process can be relatively quick if the court decides that an inquiry is unnecessary. However, if an inquiry is launched, Ms Paetongtarn can fully defend herself, and the timeline could stretch out further. In the event that Ms Paetongtarn is removed from office, Chaikasem Nitisiri, one of the three Pheu Thai prime ministerial candidates, is likely to be nominated for the top job, he said. With Srettha Thavisin, Pheu Thai's first prime ministerial candidate, having been named premier and subsequently removed from office by the Constitutional Court for an ethical violation last year, and Ms Paetongtarn facing a similar fate, with several petitions seeking her removal, the only option for Pheu Thai appears to be Mr Chaikasem, who turns 77 in August. Mr Chaikasem, a former attorney-general, recently moved to allay fears about his health, saying he is now fit to become premier. The blood clot found at the back of his neck, which caused a stroke, has since been dissolved, and there were no other health concerns he needed to worry about, he said during a round of golf in Nakhon Nayok on June 28. A photo of him teeing off was widely seen as a quiet signal that he is ready to step in if needed. Mr Jade ruled out the possibility of former prime minister Gen Prayut Chan-o-cha, currently a Privy Council member, returning to politics, even though he remains a prime minister candidate of the United Thai Nation (UTN) Party. "Gen Prayut's return could be exploited by the PP to criticise the institution of the monarchy. Mr Chaikasem would be a better choice," he said, adding a House dissolution was inevitable. According to Mr Jade, public dissatisfaction with Ms Paetongtarn is likely to intensify due to her refusal to step down and decision to take the culture minister post, with protests expected to spread to other provinces after a large turnout of at least 10,000 people at an anti-government rally on June 28 at the Victory Monument in Bangkok.
Bangkok Post
03-07-2025
- Business
- Bangkok Post
Electricity unlikely to become more expensive this year
Electricity bills are unlikely to become more expensive later this year as authorities plan to manage power tariffs to avoid increasing the financial burden on people amid a sluggish economy, says Energy Minister Pirapan Salirathavibhaga. Speaking during a live broadcast via social media on Wednesday night, Mr Pirapan said the government is working on adjusting the tariff, scheduled to take effect from September to December, adding that gas prices would largely determine the new rate. The power tariff, which is used to calculate electricity bills, is 3.98 baht per kilowatt-hour (unit) at present. This rate is applicable until the end of August. 'The new rate is expected to be on par with or slightly lower than the current rate,' the minister said. The government is preparing measures to deal with liquefied natural gas (LNG) price fluctuations after the 12-day Israel-Iran war last month. These fluctuations often lead to more expensive electricity bills. The Israel-Iran conflict ended with a ceasefire after the United States bombed Iran's nuclear sites. It caused LNG prices in the spot market to rise by 10% for a short period before they returned to normal after US President Donald Trump announced the ceasefire. Gas makes up around 60% of the fuels used for power generation in Thailand. The country needs to import LNG, mainly from the Middle East, as domestic gas supply is declining. If the war escalates and Iran resorts to closing the Strait of Hormuz, a key oil and gas shipping lane, LNG transport from the area may be disrupted. Mr Pirapan said he aims to reduce the power tariff by adjusting the country's two gas pools to better manage gas supply for the power and manufacturing sectors. The two pools are referred to as Gulf Gas and Pool Gas. Gulf Gas is the weighted average price of natural gas from fields in the Gulf of Thailand and Myanmar. Gulf gas is cheaper than Pool Gas, which refers to the weighted average wellhead price of gas from the Gulf of Thailand, Myanmar and imported LNG. Better management of these pools would enable power producers to gain more access to cheaper gas sources, the Ministry of Energy noted earlier. In the long term, Mr Pirapan is looking for ways that will authorise him to put a brake on the signing of new power purchase agreements (PPAs) between the government and companies as more contracts would increase electricity generation costs. 'More PPAs will incur more costs,' he said, referring to the availability payment that commits the government to pay for electricity throughout an entire period under a PPA, even though actual usage may be less than specified in the contract. Thailand's power generation capacity is currently 55,000 megawatts, more than sufficient to serve demand, which usually ranges from 25,000 to 26,000MW, rising to a peak of around 36,000MW in the hot season during April and May. Opposition politicians and independent analysts have been heavily critical of energy policies that have led to Thailand having an electricity surplus of more than 30% — double the 15% considered adequate for system reliability.
Bangkok Post
03-07-2025
- Business
- Bangkok Post
The prices of electricity bills unlikely to become more expensive this year
The prices of electricity bills are unlikely to become more expensive later this year as officials plan to manage the power tariff to avoid increasing the financial burden on people amid a sluggish economy, says Energy Minister Pirapan Salirathavibhaga. Speaking during a live broadcast via social media on Wednesday night, Mr Pirapan said the government is working on adjusting the tariff, scheduled to take effect from September to December, adding that gas prices would largely determine the new rate. The power tariff, which is used to calculate electricity bills, is 3.98 baht per kilowatt-hour (unit) at present. This rate is applicable until the end of August. 'The new rate is expected to be on par with or slightly lower than the current rate,' he said. The latest effort to prevent a surge in electricity prices comes as the government is preparing measures to deal with liquefied natural gas (LNG) price fluctuations after the 12-day Israel-Iran war last month over Tehran's alleged programme to develop nuclear weapons. LNG price fluctuations often lead to more expensive electricity bills. The attacks, which eventually led the US to get involved in the conflict, caused LNG prices in the spot market to rise by 10% for a short period before they returned to normal after US President Donald Trump formally announced a ceasefire. Gas makes up around 60% of the fuels used for power generation in Thailand. The country needs to import LNG, mainly from the Middle East, due to a decline in domestic gas supply. If the war escalates and Iran resorts to closing the Strait of Hormuz, a key oil and gas shipping lane, LNG transport from the area may be disrupted. Mr Pirapan said he aims to reduce the power tariff by adjusting the country's two gas pools to better manage gas supply for the power and manufacturing sectors. The two pools are referred to as Gulf Gas and Pool Gas. Gulf Gas is the weighted average price of natural gas from fields in the Gulf of Thailand and Myanmar. Gulf gas is cheaper than Pool Gas, which refers to the weighted average wellhead price of gas from the Gulf of Thailand, Myanmar and imported LNG. Better management of these gas pools would enable power producers to gain greater access to cheaper gas sources, the Energy Ministry noted earlier. In the long term, Mr Pirapan is looking for ways that will authorise him to put a brake on the signing of new power purchase agreements (PPAs) between the government and companies as more contracts would increase electricity generation costs. 'More PPAs will incur more costs,' he said, referring to the availability payment that commits the government to pay for electricity throughout an entire period under a PPA, though the actual usage may be less during that time frame. Thailand's power generation is 55,000 megawatts, sufficient to serve demand, which usually ranges from 25,000-26,000MW to peak demand of 36,000MW in the hot season during April and May.
Bangkok Post
29-06-2025
- Business
- Bangkok Post
Adding fuel to the fire
The unpredictable Israel-Iran conflict is intensifying the disorder overwhelming the Pheu Thai Party's coalition government. The withdrawal of the Bhumjaithai Party from the alliance, following a leaked phone conversation between Prime Minister Paetongtarn Shinawatra and former Cambodian premier Hun Sen, is destabilising the government, while steep US tariffs on Thai imports are scheduled to take effect on July 9. The impact of the Israel-Iran war could deal a blow to the government, as US President Donald Trump cannot predict how tensions will play out after the two countries breached a ceasefire agreement he trumpeted last week. The International Monetary Fund warned that global economic growth would be damaged if there is an oil supply shock, leading to higher crude prices and inflation if Iran decides to close the Strait of Hormuz, an oil shipping lane accounting for 20% of global consumption. In addition, the impact of Trump's tariffs are expected to weaken international trade this year, according to the World Trade Organization. The Joint Standing Committee on Commerce, Industry and Banking predicts the steep tariffs are one factor that will cause the Thai economy to grow by less than 1% in the second half of the year, leading to full-year GDP growth of 1.5-2%, down from an earlier projection of 2-2.2%. This estimate was announced in early June before the Israel-Iran war broke out, meaning it did not factor in oil price volatility, the possibility of costlier power bills and other unpleasant impacts on businesses, including tourism, transport and exports. ENERGY STABILITY Authorities are working to ensure Thailand has sufficient oil reserves and prices remain relatively stable amid the unpredictable conflict. The Energy Ministry declined to say how much the nation's oil reserves should increase to prepare for possible crude transport disruptions if the Strait of Hormuz is closed. Energy Minister Pirapan Salirathavibhaga said the authorities need to carefully manage oil stocks to maintain a continuous and reliable supply because Thailand remains dependent on oil imports from the Middle East. Up to 90% of domestic oil consumption is imported, and 60% of this is bought from the United Arab Emirates (UAE), Kuwait, Saudi Arabia and Oman, all of which ship oil to Thailand through the Strait of Hormuz. "We will seek more crude oil from other regions to increase our oil reserves," said Mr Pirapan. As of June 23, Thailand had oil reserves amounting to 60 days of use, comprising crude oil in the country (22 days), crude oil being transported here by tankers that have already passed the Strait of Hormuz (20 days), and refined oil (18 days). A plan to increase oil reserves aligns with Mr Pirapan's earlier decision to develop Thailand's strategic petroleum reserve to enhance national oil security, said an energy official who requested anonymity. He wants Thailand to increase its oil reserves, both crude and refined, to cover 90 days of use to ensure the country has sufficient oil in the event of unforeseen delivery disruptions by major suppliers. Finance Minister Pichai Chunhavajira said domestic oil traders are required by law to maintain a legal reserve. However, in practice oil traders also maintain their own reserves to support business partners, known as commercial reserves, which are typically higher than the legal reserves. Thailand is both an energy importer and exporter. If a Middle East crisis occurs, all countries including Thailand will need to keep energy supplies within their borders, said Mr Pichai. The Energy Ministry is also regulating domestic prices of diesel, gasoline and gasohol, a mix of gasoline and ethanol, to slow their increase in case the war intensifies. The Oil Fuel Fund Office reduced diesel users' contributions to the Oil Fuel Fund and is subsidising the retail price of diesel through the fund, as the fuel is crucial for transport, logistics and the operations of many industries. The fund also agreed to collect fewer contributions from users of gasoline and gasohol. As of June 22, the fund has incurred losses of 35.4 billion baht. Mr Pichai said using the Oil Fuel Fund to cushion fluctuations in oil prices should be done at an appropriate level, as a healthy economy should focus on revenue generation. Mr Pirapan said the Energy Ministry is trying to keep fuels available at appropriate price levels, but he asked the public for cooperation. "Please use energy more wisely to help Thailand reduce fuel imports," he said. OIL PRICE IMPACT Dhanakorn Kasetrsuwan, chairman of the Thai National Shippers' Council, said there is a high probability of oil price fluctuation and price increases despite Iran and Israel reaching a ceasefire agreement. The tension remains unresolved as the historical conflict seems far from peaceful. New confrontations could erupt at any time if an attack occurs, regardless of who initiates it, he said. The deployment of US and UK naval fleets to safeguard shipping lanes in the Strait of Hormuz has already increased insurance premiums and shipping costs. Shipping is complicated by rerouting risks, such as avoiding high-risk areas and taking alternative routes. Some ships may detour around Africa, which extends transit times and raises expenses. Mr Dhanakorn said Thai exports could encounter tougher market conditions and higher expenses due to increased shipping costs, particularly for routes between Europe and the Middle East that previously relied on the Suez Canal. An alternative route around the Cape of Good Hope could extend shipping times by 10-14 days. Moreover, insurance premiums for vessels, particularly those transporting goods through the Red Sea, the Persian Gulf, and the Middle East, are expected to rise, he said. "The situation in the Middle East is unpredictable, with potential trade disruptions from renewed conflicts," said Mr Dhanakorn. "We must monitor developments in the region." Higher oil prices will also impact land and air transport costs. He said while the energy and petrochemical sectors will have higher production costs, they could benefit from increasing sales prices. Meanwhile, logistics and transport businesses could struggle with increased costs and shrinking profit margins unless they adjust their prices in time, said Mr Dhanakorn. Consumer goods in the domestic market are likely to face rising transport and raw material costs. Agricultural products and food will also have higher production costs, though demand for these products remains strong in Arab markets, he said. Mr Dhanakorn anticipated heavy industries will face higher costs for imported raw materials and machinery. Manufacturers that use oil for fuel will directly bear the brunt, while others that import or export raw materials and finished products will encounter an indirect impact as shipping costs, including freight, will increase, said Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI). Rising oil prices will also increase aviation costs for tourism and airlines, said Mr Dhanakorn. ADVICE FOR EXPORTERS In the short term, Mr Dhanakorn advised exporters to review and adjust their transport routes for shipments to the Middle East or Europe. He said they should negotiate with shipping agents in advance to evaluate costs and plan deliveries effectively. Moreover, exporters must manage currency exchange risks and oil costs, said Mr Dhanakorn. Maintaining close communication with clients to ensure they are informed on any possible delays or the need for rerouting is also important, he said. For the medium to long term, exporters should diversify their markets to reduce reliance on the Middle East by seeking opportunities in Asia or Africa, said Mr Dhanakorn. If air transport is urgently needed, it is important for exporters to prepare packaging and quantities suitable for those requirements, he said. Exporters are advised to study free trade agreements and bilateral trade deals to identify tax-free trade opportunities and enhance their competitiveness. Shippers should establish partnerships with logistics providers, who can offer multiple routes to ensure flexibility if needed, said Mr Dhanakorn. NO FOWL PLAY Kukrit Areepakorn, manager of the Thai Broiler Processing Exporters Association, said the ongoing conflict between Israel and Iran has not yet affected Thailand's chicken exports. "Transport continues as usual and orders remain steady. Typically exporters place orders about three months in advance," he said. The majority of Thailand's chicken exports to the Middle East are directed towards the UAE. If one of the UAE's ports is closed, exporters have the option to reroute shipments to other destinations such as Oman. However, Mr Kukrit said if the conflict persists and drives oil prices significantly higher, this could raise production costs for Thai chicken producers. According to the Commerce Ministry, Thailand exported 9,394 tonnes of chicken worth 818 million baht to the UAE in the first five months of this year. DIM TOURISM PROSPECTS Thanet Supornsahasrungsi, president of the Association of Chon Buri Tourism Federation, said the Israel-Iran conflict could worsen Thai tourism and hotel operations, which are maintaining room rates due to weak travel confidence among short-haul markets such as China. Mr Thanet said the conflict's volatility hampers tourism sentiment in the long-haul market, including the Middle East and Europe, as a large portion of visitors from the latter travel to Thailand via Middle Eastern carriers. "Thailand is experiencing a severe low season, though everyone is expecting a surge of European and long-haul tourists for the year-end high season," he said. "This forecast now seems uncertain." The association's Chonburi Travel Mart event, scheduled for July, may not be joined by Middle Eastern agents due to their travel concerns, said Mr Thanet. A prolonged conflict would also impact global economic growth, which could lead to a slowdown in travel and reduced spending budgets, he said. If the government's fuel price control mechanisms are ineffective, this could mean higher operating expenses for hotels from gas prices, electricity fees, ingredients or transport, said Mr Thanet. This year many hotels are discounting their rooms to attract more guests, unable to raise room prices as in the post-pandemic years when pent-up demand persisted, he said. EXPENSIVE POWER BILLS Thailand's power tariff, which is used to calculate electricity bills, is at 3.98 baht per kilowatt-hour (unit) through August. Uncertainty in the Middle East means the rate may spike in the last four months because the country depends on liquefied natural gas (LNG) bought from the Middle East for use as a fuel for power generation. Like crude oil, LNG is transported through the Strait of Hormuz. A supply disruption in the strait would likely lead to higher prices. Authorities still have time to decide the power tariff for September to December 2025, with a change in LNG prices expected to be a major factor. The power tariff declined after soaring to 4.68 baht a unit in May 2023. The rate continued to fall to 4.15 baht a unit last year, and stayed at that level until the end of April 2025. If Israel and Iran do not breach the ceasefire agreement and LNG prices in the spot market remain stable, the Energy Regulatory Commission, which regulates the power tariff, can determine a rate that will not add a financial burden to households and businesses, said an energy official who requested anonymity. A portion of power bills are expected to reimburse the Electricity Generating Authority of Thailand and PTT Plc for previous subsidies they provided to control electricity prices in Thailand. "But if the Strait of Hormuz is closed, the only question is how high LNG prices will be," said the official. "Waiting for the Israel-Iran dispute to completely end doesn't accomplish much. Thailand needs measures for better LNG supply management." Mr Pirapan said the Energy Ministry asked the Electricity Generating Authority of Thailand to buy cheaper LNG to increase its stockpile. National oil and gas conglomerate PTT recently signed a 20-year purchase contract to buy 2 million tonnes of LNG from Alaska. It takes 10-15 days to transport LNG from Alaska to Thailand, compared with 25-30 days to ship LNG from the Middle East to the country, according to a ministry estimate. Thailand's power tariff is higher than in some regional countries, including Vietnam, which may be better placed to attract foreign investment, said Mr Kriengkrai of the FTI earlier. Power rates may affect the government's attempts to encourage foreign firms to invest in Thailand as entrepreneurs may opt for countries such as Vietnam that offer cheaper prices, in addition to several free trade agreements, he said. Higher power bills could force local manufacturers to raise product prices, reducing their competitiveness against sellers that export low-cost products, said Mr Kriengkrai.
