Oil hoarding probe targets 8 firms over pre-hike shortages

Police and the Department of Special Investigation (DSI) have issued summonses to eight of ten companies suspected of hoarding oil for profit between March 21 and 25.

The alleged activity coincided with nationwide fuel shortages, before the Oil Fuel Fund Executive Committee raised prices by six baht per litre.

Pol Gen Thatchai Pitaneelaboot, deputy national police chief, said that representatives of the eight oil traders are required to report to the DSI for questioning over unusual practices detected ahead of the oil price increase on March 26.

He explained that, normally, about two million litres of various types of fuel, including diesel and gasohol, are distributed to service stations each day to meet demand.

Between March 21 and 24, however, it was found that less than two million litres per day were delivered. On March 25, more than two million litres were delivered, just one day before the six-baht-per-litre price rise took effect.

He said irregularities were detected in three areas. First, three major oil traders and two jobbers were found to have delivered less fuel than average to their customers.

Second, an oil tanker carrying 7.9 million litres of diesel and other refined oil products was found to have been deliberately delayed at sea, anchoring while awaiting the announcement of the price increase.

Third, about 2.1 million litres of fuel that were supposed to be delivered from oil depots to service stations did not reach their destinations, or the trucks were diverted elsewhere. During 15 trips, the trucks’ GPS systems were switched off.

Pol Lt Gen Noppasilp Poonsawat, a commissioner attached to the Royal Thai Police, said investigators found that fuel from depots was not delivered to service stations.

An oil trader in Nikhom Pattana district of Rayong was found to have sold bunker oil without permission, using a decommissioned storage tank to store fuel.

Meanwhile, a jobber’s depot in Samut Sakhon, registered to store liquefied natural gas, was found to be storing 40,000 litres of diesel without authorisation.

Admiral Thadawut Thatphithakkul, chief of staff of the Royal Thai Navy, said 20 tanker trips were also found to have been delayed by one to two days, which he described as highly unusual.