Ministry of Energy, Thailand assures no tax rise for NGV

The Ministry of Energy, Thailand has assured that there will be no increase in excise tax for natural gas for vehicles (NGV). The assurance came as there was unconfirmed reports that NGV price would be increased again to reflect its actual cost, sparking outcry from the transport sector.

Thawarat Sutabutra, the director of the Energy Policy and Planning Office (EPPO), denied rumors that the Ministry of Energy was considering raising excise taxes on NGV stating that the matter was not on the agenda to discuss yesterday by the national energy policy committee.

He said NGV is categorised as energy for transportation sector which is subsidised by the government.

He explained that at present NGV enjoys certain privileges such as retail prices that are considerably lower than cost price and periodic government price subsidies.

Furthermore, it is granted exemption from excise tax as with other biological fuels such as ethanol and biodiesel which are considered clean alternative fuels that are environmentally friendly, he said.

Meanwhile representatives from the transport sector are planning a rally to announce their intentions to stop using NGV tomorrow.

They stated that the rational behind their action is to force the government to recognize the ever rising prices of NGV in the country.

Currently, NGV stands at 13.5 Baht/kg and was the result of a price hike of 0.5 baht that was made on September 8.

The reason for the rumoured adjustment was so that domestic NGV prices closely reflect global cost prices which at present stands at 15.52 baht/kg.

Public transport services however pay only 10 baht/kg for NGV as they are heavily subsidised by the government.

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