Retail Fuel Prices Surge: Government Faces Strong Criticism Over Subsidy Cuts
A significant increase in retail fuel prices has ignited a firestorm of criticism directed at the government, with former energy minister Pirapan Salirathavibhaga denouncing the move as “robbery” following the approval of reduced subsidies. The sharp hike, amounting to 6 baht per litre, took effect immediately, prompting widespread public concern and accusations of unfair pricing practices.
Mr. Pirapan, who leads the United Thai Nation Party (UTN), voiced his strong disapproval via a Facebook post early Thursday. He unequivocally labelled the price adjustment as “clearly robbery,” expressing his dismay at the sudden and substantial increase.
Echoing these sentiments, Atthawit Suwannapakdee, a party-list Member of Parliament for the UTN, has called for urgent intervention from the Ministry of Commerce. Mr. Atthawit argued that the price hike is excessive, particularly given that existing fuel stocks were procured at lower costs. He expressed concern that such a dramatic increase could incentivize refineries to withhold supply to capitalize on the inflated prices, thereby exacerbating the situation for consumers. Mr. Pirapan had recently stepped down as a party-list MP to facilitate Mr. Atthawit’s entry into parliament, reflecting the UTN’s current parliamentary standing and its support for the coalition government.
Opposition Demands Transparency and Justification for Price Increases
The opposition People’s Party has also joined the chorus of criticism, demanding clear explanations for the abrupt fuel price surge. Parit Wacharasindhu, the party’s spokesperson, questioned the underlying rationale for the decision, asserting that the increase is not justifiable under the principle of burden-sharing.
In a series of public statements, Mr. Parit highlighted a perceived lack of transparency and clarity surrounding several key issues. These include:
- Fuel Stockpiling and Hoarding: There are still no definitive answers regarding allegations of fuel stockpiling and hoarding by market players.
- Windfall Tax: The government has provided no clarity on the potential implementation of a windfall tax on fuel companies.
- Relief Measures: A concrete timeline for relief measures intended to support affected segments of the population has not been established.
Mr. Parit also pointed out the absence of any parliamentary statement from Prime Minister Anutin Charnvirakul on the matter during Wednesday’s session. The Prime Minister reportedly avoided reporters’ questions, and as of Thursday afternoon, had not issued any public comments on the fuel price decision. Furthermore, the opposition MP raised concerns about the parliament’s schedule, questioning why the current week’s session was limited to a single day, deviating from the usual Thursday sitting.
To illustrate the public’s immediate reaction, Mr. Parit shared a photograph of himself queuing at a petrol station in Bangkok’s Lat Phrao district. The image captured a waiting time of approximately 15 minutes around 1:30 AM, as drivers rushed to refuel their vehicles before the price increases came into effect at 5:00 AM.
Suphanat Minchaiynunt, a People’s Party MP for Constituency 9 in Bangkok, drew parallels between the current situation and past economic crises. He criticized the government for capping prices before permitting such a sudden and substantial surge. Mr. Suphanat likened the move to the events of the 1997 Asian financial crisis, which saw Thailand abandon its fixed exchange rate, leading to widespread economic repercussions.
He articulated that “In every crisis, there are always groups that profit at the expense of the public,” citing historical examples such as the price gouging of masks and rubber gloves during the Covid-19 pandemic, as well as significant price spikes in commodities like palm oil, pork, eggs, and steel.
While acknowledging that fuel prices would eventually need to rise, Mr. Suphanat advocated for gradual adjustments, suggesting daily increases of 30 to 50 satang. He believes such a measured approach would help prevent hoarding and curb short-term profiteering. “A sudden 6-baht jump suggests alignment with vested interests,” he stated, underscoring his position as the highest-polling People’s Party MP in Bangkok.
