Thailand plans oil export ban, seeks Cabinet nod for energy saving

The Energy Ministry is set to impose a ban on the export of crude oil and finished petroleum products, with the exception of Laos and Myanmar, and to propose energy conservation measures to the Cabinet on Tuesday.

Energy Minister Atthapol Rerkpiboon explained that Laos and Myanmar will be exempted from the ban because Thailand needs hydroelectricity from Laos and natural gas from Myanmar to generate electricity at power plants around the country.

He also said that oil traders will be allowed to increase their oil reserves from one percent to three percent for local consumption.

The energy minister said that Thailand will have sufficient oil reserves for 95 days of local consumption, up from 65 days as originally anticipated, because additional oil supplies are expected to arrive in the country from sources other than the Middle East.

Atthapol said that the government will also try to freeze the price of diesel, currently capped at 30 baht per litre for just 15 days, using the Oil Fuel Fund mechanism.

He did not elaborate on the proposed energy conservation measures to be presented to the Cabinet, but previous such measures have included dimming street lights, the early closure of petrol stations, maintaining air-conditioned room temperatures at 26°C and seeking cooperation from motorists by switching to public transport.