Thailand cuts gas smuggling
CR O S S - B O R D E R smuggling of cooking gas for sale has dropped sharply after soldiers have been sent to hunt down the smugglers, says Witoon Kulcharoenwirat, director-general of Thailand’s Energy Business Department.
“Illegal trading has declined a lot over the past two months due to a few factors, but the most important one is because the military is taking the mission seriously,” he said.
According to the Customs Department, last year Thailand reported a loss of 4 billion baht ($121 million) due to smug- glers who buy cheap liquefied petroleum gas (LPG) to sell in neighbouring countries at global prices. LPG prices in the domestic market were capped more than a decade ago.
Witoon said another factor discouraging illegal exports of cooking gas was a new measure allowing authorised LPG traders to reexport imported cooking gas at the actual global price. “Previously no one could export LPG, but now the legal ones can,” he said. “However, they are allowed to re-export the imported ones only, while LPG from local production is strictly banned from export.”
Since the new measures were imposed in September, LPG exports to Laos have jumped to 200 tonnes a month from 15, while Myanmar exports have leapt to 2,000 tonnes a month from 300.
“The figures could translate into reduction of illegally imported LPG in those countries as their demand remained the same,” Witoon said.
Also, the profits of illegal traders are lower than in the past, in line with retail prices
Illegal trade has declined . . . because the military is taking the mission
seriously
that were raised by policymakers. The Energy Ministry has sought to reduce distortion of energy prices and fake demand caused by long-standing subsidies.
LPG in Thailand remains cheaper than in neighbouring countries, with LPG for the automotive and household sectors selling for 22.63 baht a kilogram here and 50 baht a kilogram just across the border. The Energy Business Department is conducting a fuel consumption plan from 2015 to 2036 in accordance with the Power Development Plan.
Tentative proposals call for narrowing the gap between LPG and diesel usage in the transport sector and expanding the use of compressed natural gas and biofuels such as ethanol and biodiesel.