07/03/2011 (MCOT Online News) - As the unrest in the Middle East continues and pushes oil prices higher worldwide, Thai Prime Minister Abhisit Vejjajiva said that concerned government agencies will meet Monday to discuss public worries on the dwindling state Oil Fund and simultaneously stressed that the palm oil shortage situation in the country should ease this week.
 
Speaking during his weekly TV and radio address, Mr Abhisit said global oil prices have increased due to unrest in several countries in the Middle East, the major oil producers, causing prices of several commodities to rise while the Energy Policy Committee is trying its best to maintain diesel oil price in Thailand at Bt30 a litre, as it realises that any increase in diesel oil price would push up transportation costs.

On Friday, the Energy Policy and Planning Office (EPPO) decided to increase its subsidy of diesel B2, a blend of 2 per cent palm-derived biofuel with diesel, by another Bt0.50 per litre, raising the total subsidy to five baht per litre in order to cap the domestic diesel price at under 30 baht per litre.

Mr Abhisit said it was earlier projected that the government subsidy to cap the price of diesel oil at Bt30 per litre could continue until the end of this April and it was also agreed that once the Oil Fund has less than Bt10 billion in cash the existing measure will have to be reviewed.

Concerned agencies will discuss Monday on how the Oil Fund is actually calculated as its net cash is now stood at about Bt30 billion so that clear measure regarding diesel oil could be worked out, he said, adding that his government policy is to try its best to “lessen the burden of the people.”
 
On the ongoing shortage of palm oil in the Thai market, Mr Abhisit said that new palm oil production will be released to the market between late this month and early April and the current shortage should be eased this week.

Mr Abhisit also said there is no shortage of sugar in the Thai market as feared by people but the problem is that its prices are controlled by the government, making them much cheaper than Thailand’s neighbouring countries and in the rest of the world.

He said the artificial shortage might stem from sugar smuggling to countries where sellers could fetch a higher price or from producers’ tactics attempting to increase the local prices. Both the Industry and Commerce ministries are closely monitoring prices and to finding ways to prevent a shortage.