The Ministry of Energy has moved to reassure the public that despite the surge in fuel costs, household power tariffs will remain capped at 4.20 baht per unit. This announcement comes in the wake of the Energy Regulatory Commission’s decision to adjust the fuel tariff (Ft) rate to 0.8955 baht per unit from January to April next year, potentially elevating overall energy bills to 4.68 baht per unit.
The increment in the Ft rate primarily stems from amplified fuel expenses and the imperative need to settle debts owed to the Electricity Generating Authority of Thailand (EGAT), a measure aimed at sustaining financial liquidity. Notably, the escalation in fuel costs is notably tied to the volatile nature of natural gas prices, exacerbated by the ongoing Russia-Ukraine conflict and heightened winter demand in Western nations.
Thailand is grappling with a reduction in its natural gas production capacity due to a transitional phase involving a concessionaire in the Gulf of Thailand. This shift has propelled the necessity for increased fuel imports to meet energy demands. Anticipating a return to regular natural gas production levels by April, the ministry is actively pursuing a budget allocation aimed at assisting vulnerable segments of society in coping with the intensified energy prices.