Check it out! Asean people work 1 day. How many tanks of cooking gas can they buy?
Determining the retail price of Liquefied Petroleum Gas (LPG) in Thailand Based on global LPG Cargo (Platts) prices in relation to LPG prices from the Saudi Aramco Contract Price, set by Saudi Arabia as the world’s largest LPG exporter. and also has a global market mechanism It is the driver of the direction that affects the cost of imported LPG prices as well. Therefore, when the global LPG price reverses to a sharp upward trend in less than 10 months since July 2021, the LPG price is $620. per ton (approximately 19.93 baht per kilogram) until reaching 950 US dollars per ton (approximately 32.55 baht per kilogram) in April 2022, which affects the cost of LPG procurement in Thailand by more than 11.22 baht per kilogram. But because the LPG price mechanism in Thailand has subsidies to control the retail price level of LPG, which is a necessary product for the people, not to be too high. The rise and fall of LPG retail prices in Thailand is therefore very small compared to the changes in world market prices.
price LPG Thailand2nd lowest in ASEAN, despite the start of price increases since April 2022
ASEAN countries have different LPG retail prices according to the energy policies of each country. According to data from June 2022, the Philippines has the highest LPG retail price in ASEAN, or about 60 baht per kilogram. followed by Vietnam and Laos at 56.54 and 40.11 baht per kilogram respectively. while Malaysia has the lowest retail LPG price in ASEAN at 15.44 baht per kg. followed by Thailand with a selling price of 21.87 baht per kg. which is the level that increases after the government has decided to adjust the price from being fixed at 18.87 baht per kilogram since March 2020 in order to make the price level consistent with the global LPG price situation
Understand the price structure and the role of funds. LPG
The difference in LPG retail prices in ASEAN countries In addition to differences in LPG procurement mechanisms, there are also differences in taxation policies, funds and price subsidies of each country. Only Thailand’s LPG price structure, if calculated from the LPG price as of June 30, 2022, which has a retail price of 21.87 baht per kg. The price structure consists of the price at the refinery at 27.48 baht per kg. Excise tax 2.17 baht per kilogram Municipal tax 0.22 baht per kilogram LPG fund (subsidy) -12.69 baht per kilogram VAT 1.20 baht per kilogram Retailer marketing fee 3.26 baht per liter, VAT marketing fee 0.23 baht per liter, which can be seen that the retail price of LPG is subsidized by the LPG fund mechanism in large proportions, causing the retail price to be lower than the cost of LPG meat or the price at Refinery to lighten the burden of the people
Comparison of the cost of LPG ASEAN countries
However, comparing the cheap or expensive of the LPG retail price of each country in ASEAN appropriate and equal would not be able to compare through a single-dimensional retail price Because each country has different energy management policies. Therefore, an appropriate and equitable comparison should also reflect the price that is related to the income or purchasing power of the people at the same time. And when reflecting the cheap or expensive ranking of LPG price of each country by comparing the ratio of income per capita to LPG price, it was found that Myanmar had the most expensive LPG price, although the LPG retail price of 37.60 baht per kilogram was high. Ranked 4th, but the Myanmar population earns only 111 baht per head per day.
Therefore, the purchasing power of LPG is only 3 kilograms per day. and Malaysia with the lowest LPG retail price in ASEAN The retail price is 15.44 baht per kilogram. While the population earns 1,067 baht per head per day, they can buy 69.1 kg of LPG, or 4.6 tanks (15 kg tank size). Thailand is the country with the lowest LPG retail price, the second in ASEAN after Malaysia. The retail price is 21.87 baht per kilogram. While the population earns 679 baht per head per day, they can buy 31 kg of LPG, or about 2 buckets (15 kg tank size), which shows that the retail price of LPG in Thailand is very cheap compared to ASEAN countries. both in terms of direct retail prices and compared to the income of the Thai population
However, although the current situation of LPG retail prices in Thailand is at a better level than many ASEAN countries. Because the government has played a role in reducing the burden of expenses. and mitigate the impact of price volatility according to the global market mechanism at a considerable level While the energy uncertainty situation remains a factor that is beyond the control of many countries. But one thing that all people’s sectors can take part in and act on right away is Value awareness and energy utilization cooperation.
