Office of Agricultural Economics secretary-general Apichart Jongskul said the Palm Oil Policy Committee, chaired by Deputy Prime Minister Suthep Thaugsuban, on Thursday approved a proposal to import 30,000 tonnes of raw palm oil from Malaysia to help overcome the current shortage.
However the government will not increase the Oil Fund diesel subsidy allocation above the current five billion bath, intended to the keep the price below 30 baht a litre.
The Public Warehouse Organisation would import the palm oil and allocate it to cooking oil manufacturers. The panel set a condition that the import s be completed in January because the domestic crop is expected to enter the market in February and March, said Mr Apichart.
Internal Trade Department director-general Vatchari Vimooktayon said the vegetable oil price sub-committee will meet this Friday to consider approving an increase in the price of a one litre bottle of palm cooking oil.
“The retail price of palm oil is likely to increase by nine baht to 47 baht a bottle, from the current 38 baht,” she said.
An increase in the retail price will help settle the current palm oil shortage problem, she said.
Commerce Ministry officials have said they suspect some suppliers are hoarding palm oil to drive up the local price. Palm oil is also used in production of biodiesel.
Energy Minister Wannarat Channukul said his ministry will not increase the five billion baht allocated as a subsidy from the state Oil Fund to rein in rising diesel prices.
Mr Wannarat said the Finance and Energy ministries will seek additional measures to keep the retail price of diesel from going over 30 baht a litre once the allocated five billion baht from the Oil Fund is used up.
The government would also not discontinue the sale of 91 octane petrol yet because people with older cars still need it.
"About eight million litres of 91 octane petrol are being used each day, but we expect to stop selling it in the next two to three years," the minister said.
http://www.bangkokpost.com/business/economics/214761/palm-oil-import-plan-approved
