THAILAND'S EXPERIENCE IN
OIL PRICE DEREGULATION

National Energy Policy Office, 1995

 

 

OIL PRICE DETERMINATION BEFORE DEREGULATION

RETAIL PRICE = EX-REFINERY/IMPORT PRICE + OIL FUND + TAXES + MARKETING MARGIN

OIL MARKET BEFORE DEREGULATION

PREPARATION OF OIL PRICE DEREGULATION

INCREASE COMPETITION IN DOMESTIC OIL MARKET

IMPLEMENTATION OF OIL PRICE DEREGULATION

SEMI DEREGULATION

FULL DEREGULATION

MEASURES TO PROTECT DOMESTIC REFINERIES

Import Taxes

Unit : Satang/Litre
  Before Deregulation 1995
Gasoline, Diesel, Kerosene 1.0 6.5
Fuel Oil 0.1 1.0

Oil Reserve

Unit : % of Volume
  Before Deregulation 1995 1 Jan 97
Crude oil held by refineries 4% 5% 5%
Locally refined finished products held by oil traders 3% 5% 5%
Imported finished products held by oil traders 3% 5% 10%

PROBLEMS RESULTING FROM OIL PRICE DEREGULATION

GOVERNMENT CONTROLS IN CURRENT SYSTEM

CHANGES IN OIL MARKET SINCE DEREGULATION

MAJOR PLAYERS INVOLVED IN DEREGULATION

IMPROVE DETERMINATION OF EX-REFINERY & IMPORT PRICES TO MORE ACCURATELY REFLECT WORLD PRICES

IMPROVE TAX AND RETAIL PRICE STRUCTURE OF PETROLEUM PRODUCTS

Unit : Baht/litre
  1984 1995
  Tax & Oil Fund Retail Price Tax & Oil Fund Retail Price
Premium Gasoline 2.7898 11.70 3.248* 8.60*
Regular Gasoline 2.4410 10.80 3.206* 7.96*
High Speed Diesel 0.7431 6.70 2.829 7.48
LPG (Baht/Kg) -0.2684 10.74 1.774 9.72
* Prices and taxes of unleaded gasoline

PRICE STRUCTURE OF PETROLEUM PRODUCTS

Unit : Baht/Litre

  Unleaded Premium Unleaded Regular High Speed Diesel
Ex-Refinery 3.9100 3.4008 3.6889
Excise Tax 2.3500 2.3500 2.0000
Municipal Tax 0.2350 0.2350 0.2000
Oil Fund 0.0300 0.0300 0.0700
Energy Conservation Promotion Fund 0.0700 0.0700 0.0700
VAT 0.4616 0.4260 0.4220
Wholesale Price 7.0566 6.5118 6.4509
Marketing Margin 1.4424 1.3535 0.9618
VAT 0.1010 0.0947 0.0673
Retail Price (BKK) 8.60 7.96 7.48

REDUCTION IN RETAIL PRICES BETWEEN BANGKOK AND PROVINCIAL AREAS

IMPLEMENTATION OF PRICE GAP REDUCTION

 

 

 

National Energy Policy Office
27 November 1995