Bangkok: "Sirikanya" criticizes the government's haphazard approach to solving the oil price issue, saying WFH and canceling study trips won't help, and urges the release of accurate data to reduce panic. Ms. Sirikanya Tansakul, a party-list MP and deputy leader of the People's Party, criticized the government's measures to deal with the oil price crisis, stating that they were not targeted effectively, especially the Work From Home policy and the cancellation of field trips for civil servants, which she believed had little to no solution.
According to Thai News Agency, throughout the 15 days that the government implemented measures to freeze fuel prices, chaos and panic increased towards the end, even though the situation had not been severe before. The People's Party has been closely monitoring the situation.
Currently, although the country's oil reserves have increased due to imports from various sources such as Africa and the United States, the main problem lies in "allocation" and the price difference between pump prices and prices from middlemen. This results in hoarding not only by the public but also by industries that require large quantities of oil.
Ms. Sirikanya believes that panic buying by the public played a part, but it is unlikely to be the main cause of the simultaneous oil shortage in many areas. She believes that hoarding by the industrial sector is a more significant factor.
Regarding solutions, it was proposed that the Oil Fund be used as the primary tool to cap diesel prices at no more than 30 baht per liter. The call also included a demand for the government to clearly announce a price increase plan, such as when the price will gradually increase to approximately 33 baht per liter, and to implement a gradual approach to minimize the impact on the public and businesses.
Furthermore, it was proposed to shift from setting a fixed price ceiling to setting subsidy limits and durations instead, pointing out that there is still approximately 20 billion baht in borrowing capacity that can be used to stabilize the situation during the caretaker government.
For the transportation sector, assistance should be targeted, such as coupons or vouchers, to reduce costs that may affect product prices. While reducing excise taxes is feasible, caution must be exercised regarding the impact on government revenue and fiscal stability.
Ms. Sirikanya also stated that allowing oil prices to reflect reality is possible if the government communicates honestly to raise public awareness of the need to conserve energy, instead of implementing scattered and ineffective measures.
Regarding refining margins, it is believed that the government can regulate them if it has accurate cost data for refineries. While the idea of a windfall profit tax is used in many countries, it needs careful consideration to ensure fairness.
Finally, it was emphasized that the government must urgently build confidence by communicating information transparently, such as disclosing oil reserves through a dashboard to reduce panic and hoarding. The government must also closely monitor commodity prices, especially finished goods which tend to increase and not decrease. It was also noted that the list of 59 controlled items is insufficient to handle the current situation.