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Pattaya Daily News

17 February 2011 :: 10:02:53 am 50382

FTI urges extended government LPG price subsidy for 3-5 years

BANGKOK, Feb 17 – The government should extend its subsidy of liquefied petroleum gas (LPG) prices in the industrial sector for 3-5 years to ease a possible mass layoff of workers employed by small- and medium-size enterprises (SMEs) in the glass and ceramic industries, according to Federation of Thai Industries (FTI) Chairman Payungsak Chartsuthipol.
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He said the planned LPG price float in the industrial sector in July would fuel production costs in the sector. The LPG price hike by 1 baht per kilogram would raise production costs by 1.3-1.4 per cent.

At present, he said, SME glass and ceramics manufacturers consume 140,000-150,000 tons of LPG annually.

Should LPG prices in the industrial sector be allowed to float, the glass and ceramics industries would be adversely affected with a possible mass layoff of some 60,000-70,000 workers.

Because of this, he said, the government should postpone its plan to float LPG prices in the industrial sector for 3-5 years or so to reduce the possible impacts.

Thai Chamber of Commerce (TCC) Chairman Dusit Nontanakorn said the government’s plan for the LPG price float in July would definitely impact entrepreneurs using LPG as fuel.

To reduce the impact, the government should allow LPG prices to increase gradually and give the entrepreneurs a leeway at least 1-2 years for adjustment, he said.

In addition, Mr Dusit urged the government to accelerate resolving the border dispute between Cambodia and Thailand peacefully.

The situation, if allowed to drag on, would definitely affect the border trade of both neighboring countries, he said.

Report by : MCOT online news

Photo : Internet   Category : Business News

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