SET-listed PTT Oil and Retail Business (OR) is optimistic about the Energy Ministry’s initiative to improve the regulation of oil trade and pricing in response to fluctuations in crude oil prices, even amid concerns regarding potential effects on its oil retail operations.
The company addressed stock investors’ worries following recent remarks by caretaker Energy Minister Pirapan Salirathavibhaga, who indicated that energy authorities would be granted increased authority to manage domestic oil and cooking gas prices through taxes and subsidies under a new law.
As part of this legislation, a new commission will be established to set suitable tax rates for oil, a role currently held by the Finance Ministry. Once the new law is enacted, only financial officials will be responsible for tax collection.
The introduction of this bill will lead to the dissolution of the Oil Fuel Fund Office, allowing the new commission to take over management of the fund, which has been suffering significant losses due to oil and gas price subsidies.
Additionally, energy authorities aim to regulate both ex-refinery and retail prices for oil.
Wilaiwan Kanjanakanti, OR’s senior executive vice-president for finance, expressed confidence that the new law would not impede profitability for oil retailers. She believes that officials will avoid implementing overly stringent price controls that could impact marketing margins—revenues generated by oil retailers after accounting for costs.
Ms. Wilaiwan noted that energy officials are well-informed about the oil business, as the company has provided them with all necessary information during the law-making process.
In another issue, Ms. Wilaiwan clarified the recent drop in OR’s domestic oil retail market share from 40% to 39% as of the end of June, attributing the decrease to the reduction of state diesel price subsidies to 33 baht per liter, as well as the spread of “fake news” alleging unfair sales practices at a PTT petrol station in Saraburi.
