Another reduction to the country’s oil reserves is possible if the demand is still low, according to Energy Minister Sontirat Sontijirawaong on Tuesday.
Experts said Thailand’s demand for oil has diminished by nearly 10 per cent in March and more than that in April.
For example, oil usage from airlines has reduced by 90 per cent due to the nationwide lockdown.
This is leading to an oversupply problem.
The government has already lowered the country’s reserves level, which will come into effect in May, he said.
He added that the latest reduction would help with oversupply by reducing the operation costs of oil refineries and traders.
Another cut in crude reserves may be possible depending on the outbreak. As the faster the pandemic is resolved, the faster oil demand will return, added Sontirat.
On April 3, the cabinet decided to lower the country’s crude reserves from 6 per cent to 4 per cent for one year. The level will return to 5 per cent after that.
The Energy Regulatory Commission will also commence with the purchase of 100 megawatts of electricity from community-owned power plant projects, said Sontirat on Tuesday.
The ministry said the move would support grassroots economy and it would also lead to job creation.
The cabinet has approved community-owned power projects under the Energy for All scheme since September 2019. The scheme is expected to generate a total of 700 MW from privately owned solar cells and bio mass projects with a total investment worth 70 billion baht.
