Fuel price cuts coming

[Jim]

UPDATE 1-Thai PM offers tax cuts, handouts to spur economy

Tuesday, July 15, 2008 08:23:18

BANGKOK, July 15 (Reuters) - Thai Prime Minister Samak Sundaravej unveiled a
$1.4 billion package of tax cuts and handouts for the poor on Tuesday in a bid
to revive a struggling economy and his government's sagging popularity.
The measures, announced by Samak on national television, follow growing
street protests and a series of legal cases that threaten his five-month old
government and have worried foreign investors.
"We have rolled out these measures to help the people to weather rising oil
prices," Samak said, adding that the six-part programme would be in place for
six months.
The 46 billion baht ($1.4 billion) package includes the virtual waiver of
excise taxes on ethanol-mixed gasolines and diesel in a bid to counter soaring
fuel prices, which pushed inflation to a decade high in June.
The retail price of diesel could drop by 5.2 percent and bio-gasolines could
fall by up to 8.7 percent, a Reuters calculation based on the proposal showed.
Cooking gas for households will be frozen at current heavily-subsidized
prices. Low-income earners will get free water, electricity, bus and train
rides.
The announcement came during the midday break for Thailand's main stock
index <.SETI>, which ended the morning session down 2.2 percent, its lowest
since May last year.
Analysts said the plan was not expected to lend much support to Thai shares,
which have lost nearly 18 percent since a street campaign against the government
began on May 25.
"The package will largely help low-income people. It will not do much to
boost market sentiment, which will continue to edge lower following overseas
markets," Tisco Securities strategist Viwat Techapoonphol said.

CABINET SHAKEUP EXPECTED
Samak's government had promised to focus on the economy after winning a
December election that marked Thailand's return to democracy after a 2006 coup
ousted billionaire premier Thaksin Shinawatra.
But the six-party coalition has been distracted by prolonged street protests
against the pro-Thaksin coalition government, and more recently legal rulings
that cost Samak two senior cabinet ministers.
Samak has so far rejected calls for him to quit coming from the People's
Alliance for Democracy (PAD), a coalition of activists, royalists and
businessmen, who accuse the 73-year-old premier of being a Thaksin proxy. They
have vowed to press on with the protests until he leaves.
In a bid to deflect criticism of his cabinet, stocked mainly with Thaksin
loyalists and veteran political powerbrokers, Samak told reporters on Tuesday he
had list of names for a cabinet shakeup, but did not say when it would occur.
($1=33.64 Baht) (Additional reporting by Pracha Hariraksapitak and Arada
Therdthammakun) (Writing by Darren Schuettler; Editing by Bill Tarrant)

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[VincentD]

It won't make a difference, it's only delaying the inevitable.

People are reacting by converting their petrol-driven engines to run on gas, and those with diesel engines are replacing them with petrol engines converted similarly. Secondhand engine prices are at a premium, and are being brought in from Japan.

Petrol stations regularly are out of stock for both CNG and LPG. Older cars are not designed for ethanol-based fuels so subsidising bio-fuels will only benefit those with more recent cars, not the people with the lower incomes and the older vehicles.

The phasing out of standard octane (95) benzine has got a lot of people upset. The guys who have motorcycles say they can't use bio-fuels and 91 octane barely gets them moving. Diesel fuel is already more expensive than benzine; a five percent drop in price won't make much of a difference.

He's clutching at straws.

[The understudy]

Hi there Y'all!!!

This is just populists tactics to keep the voters @ Grassroots level happy. for most of us in the midddle there's just nothing we can gain from this. Exept from the Fuel cuts that will give motorists a short sign of relief. But as more rising Energy costs worldwide will take toll @ Subsidies which in turn will be preassure to it raise prices again.
I would rather see a fasttrack in it's Transportation Megaprojects. at least one Subway line being started and next year another two. and the following year the last 2.

Your's the understudy!!!

[Jockey]

Fuel prices are going to continue to rise rapidly, particularly with speculation Israel and America are going to start a war with Iran. Get ready for a stock market crash, put your money into GOLD and commodities. From what I've heard we're on the first step leading us to another great depression similar to 1929 but affecting the whole world. Many people think America plundering the Middle East oil is good for your average American citizen, making oil cheaper. In fact the opposite is true. When the evil world elite has control over all the oil they can charge whatever they like. Expect huge rises, double what they are now and rising.

On the bright side it will be sunny tomorrow!

[redzonerocker]

Fuel prices are going to continue to rise rapidly, particularly with speculation Israel and America are going to start a war with Iran. Get ready for a stock market crash, put your money into GOLD and commodities. From what I've heard we're on the first step leading us to another great depression similar to 1929 but affecting the whole world. Many people think America plundering the Middle East oil is good for your average American citizen, making oil cheaper. In fact the opposite is true. When the evil world elite has control over all the oil they can charge whatever they like. Expect huge rises, double what they are now and rising.

On the bright side it will be sunny tomorrow!

you're such a cheerful soul jockey

[sandman67]

hmmmm.....seems from some financial commentary in the Bangkok Post that academics and financial experts arent as sure about these proposals as the PM and his buddies are.....

some are even speculating these proposals could just make things worse....or are a shallow attempt at populist vote buying......

.... seems yet again PPP stands for PISS POOR POLICIES.

all I know is a fill er up at the fuel station now costs 130bht ish..... thats a 30 baht rise in the last 6 months.....

I feel sorry for the fishermen and farmers....

[Big Boy]

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