Thailand delays price rise of LPG

With Thailand PM Somchai Wongsawat stepping down from his office, the country has postponed a plan to raise the price of liquefied petroleum gas (LPG) used in cars and industry.

“We have to wait for the new prime minister to sign for final approval. It will depend on how long it takes for the new cabinet to be formed,” Energy Minister Wannarat Charnnukul told reporters on Wednesday.

LPG is commonly used in Thai households as a fuel for cooking and for heating water (accounting for 46 percent of total LPG consumption)and is sold to them in kgs. Petrochemical producers consume 20 percent, industrial users 15 percent and cars consume 19 percent. LPG for vehicles is sold in litres. Today’s LPG pump price is over 11 baht per litre.

The government had planned to gradually raise LPG prices by a total of 6 baht ($0.17) per kg, or 33 percent, in increments of 2 baht per month. For now, the planned rise excludes LPG used in households and petrochemical plants.

Somchai was banned from politics for five years on Tuesday and his party disbanded for electoral fraud. Coalition party members will switch to new “shell” parties and vote for a new prime minister on Dec. 8.