“Piraphan” plans to draft a law separating “commission fees” for buying and selling crude oil from “Cost of Oil”

Bangkok, "Piraphan" prepares to draft a law to separate other expenses and "brokerage fees" for buying and selling crude oil from 'Oil costs' close the channel for traders. Put the burden on the people A new organization is about to be established to take care of the national oil reserve system. Mr. Peeraphan Saleerathavipak, Deputy Prime Minister and Minister of Energy, chaired the meeting of the Committee to Establish an Oil and Gas Reserve System for Strategic Security and a System for Maintaining Oil and Gas Price Levels, No. 15/2024, at Government House. To consider the draft guidelines for establishing fuel reserves. For stability and maintenance of fuel price stability in Thailand. At this meeting, the meeting also considered facts regarding commissions from crude oil trading to refineries in Thailand. Mr. Peeraphan is drafting a law to set criteria for prohibiting fuel traders from using "commissions" and expenses that are not The 'direct costs' of acquiring oil are calculated as part of 'Oil costs ' which will ultimately cause the people to bear the burden of this cost instead. 'One thing that is worrying about the cost of oil today is Regarding commissions and expenses that are not direct expenses in purchasing oil. If the commission and these expenses can be combined with the actual fuel cost. You can take these values ??and add them. cause high costs So I have to sell at this price only. When this happens, we don't know what the true cost of oil is. Because he included other expenses that were not necessary here as well. Nowadays it is like this. Because there is no law So it became a burden on the people. Because we are unable to check every item in detail. But if we have a separate law It is determined that the things that will be added to the cost of oil are: 1. The real cost of gas 2. Shipping costs and transportation costs As for whether he has a commission or claims for expenses that are not the actual cost of the oil, they are included but cannot be included. You want your company to have a lot of burdens. in order to reduce profits In order not to have to pay a lot of taxes or anything, you can choose to do as you please. But you can't take those costs and pass them on to the people through the cost of oil. What we don't have today is We don't yet have a law authorizing this. But this is what he is doing to solve this problem,' Mr. Peeraphan said. In addition, the meeting considered information related to fuel in foreign countries such as Russia and Lao PDR, as well as energy laws of ASEAN member countries. Previously, the meeting had considered various information and facts. related fuel Oil price structure and energy laws of many countries around the world To study fuel reserves abroad Both in terms of storage format The origin of the oil Storage infrastructure, financial resources, management and regulatory organizations To draft guidelines for establishing a fuel reserve system for Thailand's strategic stability. which has an overall goal of storing fuel for no less than 90 days (Currently , Thailand's legal fuel reserve by the private sector is 25 days). The management mechanism in this part will be carried out through the Fuel Reserve Office. National Legislative Assembly (NESDB), which is a newly established organization. Responsible for directing and issuing orders to the private sector To allow the private sector to take action regarding the government's oil reserves. As for the guidelines for implementation in the initial phase, relevant laws and regulations will be drafted. Both strategic oil reserves for security and emergency situation management, a total of 6 issues, and the missions of related agencies will be transferred to the National Fuel Reserve Office (NHCO), which is the organization that will be established. new Including preparing to provide space for storing oil reserves. The Strategic Oil Reserve System, or SPR, is beneficial overall. It can help prevent and solve fuel shortages. Helps reduce the cost of purchasing oil from abroad during high world market prices. And it can also increase Thailand's trade role as a center for oil trading in the region. Source: Thai News Agency