Petrochemical operators In Thailand are unlikely to feel much effect from the policy to collect Bt1 per kilogram of LPG (liquefied petroleum gas) sales for the Oil Fund, as per The Nation. It is unclear whether users of LPG as feedstock, not as fuel, will be required to pay this contribution to the Oil Fund. It is expected that the Energy Ministry will meet Thai petrochemical producers to discuss the policy in detail before its implementation in January. The levy decision was resolved by the National Energy Policy Council last week to reduce the burden of importing LPG.
Even PTT Chemical, with annual demand of 400,000 tons of LPG, will face minimal impact from the levy. This is because of its planned merger with PTT Aromatics and Refining (PTTAR), one of the suppliers of LPG to PTTCH, which will allow the company to use LPG as feedstock internally without purchasing it.