ID :
339556
Sat, 08/30/2014 - 13:48
Auther :

Thai household sector benefits most from reduced domestic fuel prices

BANGKOK, August 30 (TNA) - TMB Analytics, the economic research centre of Thailand-based TMB Bank, says lowering domestic gasoline prices should help boost people's purchasing power and state revenues, while cutting costs of the local business sector to a certain extent. TMB Analytics assessed on Saturday (Aug 30) that Friday (Aug 29)’s cut in domestic retail gasoline prices should stimulate people’s purchasing power, lower transportation costs in the business sector and generate more revenues for the state. The army-led National Council for Peace and Order (NCPO) ordered the cut in retail gasoline prices by 1–3.89 baht a litre but raising retail diesel prices by 0.14 baht per litre, which is still lower than 30 baht a litre, a benchmark level, in a bid to assist the local transportation sector. TMB Analytics indicated that the cut would help lower energy costs by an average 0.14 per cent or equivalent to 820 million baht annually. As majority of local business enterprises consume diesel more than benzene, Friday’s gasoline prices cut would be, thus, more beneficial to small-scale transportation services, namely car rental and document delivery services. The TMB research unit also said the state would receive more taxes collected on diesel following the cut and while consumption of diesel is much more in Thailand, it is projected that the state would receive about 6.8 billion baht more in revenues annually. (TNA)

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