Price Trends 2023

[Sundance2020]

Now there is not only a Pepsi price surge coming to Thailand



Amidst Thailand’s skyrocketing prices on fuel, postal services, and palm oil, another item’s price is set to go up- Pepsi. Suntory Pepsico (Thailand) Beverage announced today that Pepsi’s price will rise by up to 2 baht per bottle starting June 1, now that the cost of plastic bottles and aluminium cans has risen. The company noted, however, that the price surge will hit stores in July 2022

The company said the price of a small Pepsi bottle or can will rise by 1 baht, from 10-15 baht to 11-16 baht per item. Meanwhile, the retail price of a large bottle will go up by 2 baht, while the wholesale price will increase by 20-24 baht per pack. The company added that it will offer discounts so retailers can maintain the current price of Pepsi throughout June before the hike hits shops in July. The company said the price of its other soft-drink brands, including 7-Up and Mirinda, would remain the same.

[Sundance2020]

Current Gas Prices

[Sundance2020]

Thailand to borrow 20 Billion THB to maintain fuel subsidies

The Office of Fuel Fund plans to borrow 20 billion baht to top up the country’s oil price subsidies as residents and different departments are being increasingly affected by the rising oil price. The fund is seeking inbound loans from the Government Saving Bank and Krungthai Bank. The details are expected to be clear at the end of this month.

The Director-General of the Fuel Fund Office, Wisak Wattanasup, said the fund was negotiating with the Government Saving Bank and Krungthai Bank to obtain the first batch of loans valued at 20 Billion THB. Wisak noted that the fund had a backup plan if those 2 financial institutions were unable to furnish the loans. But the director was confident that the fund would be able to sort out the loan before the end of this month.

The Head of the Policy and Strategy Department, the Fuel Fund Office, Ponchai Jirakunpisarn, insists that the fund borrowed money only as needed and considered the loan amount according to the ability to practically service the loan.

Ponchai explained that the Fuel Fund had a remaining budget of about 13 Billion THB, so the fund didn’t plan to use all 20 billion baht immediately after getting it. The funds are being borrowed “just in case the fund was running out of budget”.

The Thai government has been subsidising the retail price of diesel by up to 10 THB a litre, artificially capping the diesel prices in Thailand. Ponchai added that the reduction of the excise tax for diesel at 5 baht per litre announced by the government is also reducing the fund’s subsidy burden and budget.

SHELL FUEL PRICES
Reference Price on Date 25/05/2022

Product THB per Litre
THB 42.74 Shell FuelSave Gasohol E20
THB 43.58 Shell FuelSave Gasohol 91
THB 43.85 Shell FuelSave Gasohol 95
THB 51.34 Shell V-Power Gasohol 95
THB 31.94 Shell Diesel B20
THB 31.94 Shell FuelSave Diesel
THB 31.94 Shell FuelSave Diesel B7
THB 31.94 Shell V-Power Diesel
THB 46.39 Shell V-Power Diesel B7:

[Sundance2020]

Thailand’s postal rates to go up after nearly 2 decades

For the first time in 18 years, Thailand’s postal rates are going up. The country’s Digital Economy and Society Ministry said that according to data from 2011-2020, Thailand Post has a social service burden of up to 18.4 billion baht, and it’s likely to keep rising. Yesterday, the Cabinet approved a proposal by the ministry to raise rates.

Thailand’s profit of 3.8 billion baht in 2019 dropped to 385 million in 2020, incurring a loss of 904 Million THB in 2021. In its 2020 report, Thailand Post said the agency has to operate over 5,000 post offices so that people can have adequate postal service, even though some offices brought in low revenue.

From now on, envelopes will cost 3-55 THB a piece in 2022 to 2024. They will cost 4-62 THB per piece from 2025 onwards. Postcards will cost 2 baht per piece from 2022 to 2024, and 3 baht per piece from 2025 onwards. Publications of 1-2,000 grams will cost 3-25 THB per piece from 2022 t0 2024, and 4-33 THB per piece from 2025 onwards. Parcels 1-1,000 grams will cost 15-20 baht per piece from 2022-2024, and 20-25 THB per piece from 2025 onwards.

Lastly, delivering literature for the blind is free if the package weighs 7,000 grams or less.

Thailand is seeing a wave of price surges. The diesel price is set to spike starting May 1 now that a subsidy on diesel has been depleted. After an outbreak of African Swine Flu in Thailand, the price of pork surged in January. A Thai official said there was a shortage of pigs in Thailand following the outbreak. Before it, there were 1.1 million breeding pigs on the market, but after the outbreak, that number dropped to 660,000.

[Sundance2020]

Thailand’s bottled palm oil price continues to skyrocket



Efforts by Thailand’s palm oil farmers, extractors, and producers to cap the price of bottled palm oil at 64-66 THB per litre have proved fruitless. The price has now skyrocketed to 70-76 THB in some markets, according to a survey by Thai PBS. The survey says that in department stores, the price is 68 THB per litre or lower.

Palm oil producers claim the price should be even more expensive, 77-78 THB, because of the high production costs. A grocery store owner told Thai PBS that she had to up her retail price because the wholesale price for a pack of 12 bottles is about 800 THB, and if she sold them for 70 THB each, she would only make about 3 THB per bottle.

There has been a palm oil shortage in Indonesia for the past month since the Russia-Ukraine crisis has impacted the supply of vegetable oil in the country, making palm oil more expensive. Indonesia is the world’s largest palm oil exporter. Palm oil is only grown in the tropics, and is by far the most consumed and traded edible oil in the world.

It’s estimated that, when walking into a convenience store in Asia, almost 50% of the products would involve palm oil in their manufacture or are an actual ingredient. The palm oil crisis has plunged much of the world into a conundrum. Now that palm oil prices have skyrocketed, prices of other vegetable oils have now gone up as well, such as soybean and sunflower oil.

[Sundance2020]

Diesel price increase hits motorists in the pocket

Motorists were hit in the pocket once more as the price of diesel fuel increased today by 1 baht to 33 THB a litre. The latest price hike, decided by the Fuel Fund Executive Committee, will remain in place for around a week until the committee meet again on Monday to decide whether the price should be further increased.

Director of the Oil Fuel Fund Office, Wisak Watanasap, said the price hike is necessary because of rising global costs, the reduction in US strategic oil reserves, and speculation that the price of crude oil will remain high next week.

Crude oil increased to over US$120 a barrel yesterday, a two-month high, as markets wait to see if the European Union member states will agree to ban Russian oil imports.

The Brent crude futures contract for July was up 59 cents at US$120.02 a barrel today, while the August Brent Contract rose to US$116.30 a barrel.

Wisak revealed that the Oil Fuel Fund is now in the red, by an estimated 81.4 billion baht, while its cash reserves amount to about 9.7 Billion THB

The one-baht a litre price increase for diesel will reduce the outflow of oil subsidy from Oil Fuel Fund by about 60 Million THB

[Sundance2020]

In midst of price inflation, Thailand to freeze prices on dozens of products



In the midst of the world’s overwhelming price inflation, Thailand plans to freeze the prices of 46 items. The items are grouped into 9 categories, which are: paper and paper products, transport-related products, farm-related products, petroleum products, medicines, construction materials, “important” farm products, consumer products and food.

The items include bicycle and car tires, motorcycles and trucks, water pumps, fertiliser, chicken, chicken eggs, and durian, just to name a few. Commerce Minister Jurin Laksanawisit said yesterday that he had instructed governors and commerce officials in all provinces to monitor prices of goods, to prevent traders from hiking the prices of controlled products.

Thailand’s Central Committee on the Price of Goods and Services will keep the prices on the 46 products frozen until the end of June next year, according to Jurin. Jurin also noted that the price of instant noodles will not rise, even though the cost of wheat, its main ingredient, has jumped due to the Ukraine crisis. He also dismissed reports that there is a shortage of canned fish and vegetable oil, saying there is sufficient supply to meet domestic demand.

Jurin added that a panel has been set up to monitor bottled vegetable and palm oil. This news comes after the price of bottled palm oil skyrocketed to 70-76 THB in some markets last month, according to a survey by Thai PBS. The survey said that in department stores, the price was 68 baht per litre or lower.

Earlier this week, Jurin said the Commerce Ministry would work hard to keep goods as affordable as possible, and that the ministry believed it had created a “win-win” strategy in which consumers, businesses, manufacturers, and farmers can all benefit.

[Logan]

Cabinet to discuss cap on rising fuel costs

Energy Ministry permanent secretary Kulit Sombatsiri yesterday revealed the Energy Policy and Planning Office is going to support measures to buffer the rising cost of fuel resulting from the ongoing Russia-Ukraine conflict. Kulit says the ministry will look for government help when the Cabinet reassembles for its weekly meeting on Tuesday.

“The price of diesel oil will be maintained at no more than 35 baht per litre until the end of June.”

The EPPO also promised it would continue to subsidise cooking gas for low-income earners until the end of September. Kulit says the Department of Energy Business has been charged to persuade PTT to extend a discount on liquified petroleum gas to small food vendors and eatery owners until the end of September.

“The EPPO had agreed with the proposed measure to ease the impact of the high price of natural gas for vehicles.”

The Energy Ministry will ask PTT to retain the NGV retail price at 15.59 THB per kilogram, while keeping the price at 13.62 THB per kilo for Bangkok’s taxi drivers in Bangkok until September 01.2022

[Steve]

Price of made-to-order food surge in Thailand

Price inflation continues to rear its head in Thailand and across the globe. The latest item to get more expensive is made-to-order food. The average price per dish of made-to-order food bumped up by about 3.7 THB or 6.7% in May, according to a year-on-year comparison by the food delivery app Line Man Wongnai. The report said that dishes with pork have remained around the same price, however, prices on chicken dishes have been spiking since March. Pork dishes cost from 64-69 baht on average in the first half of 2022, while dishes with other meats ranged from 64-80 THB.

Prices in Bangkok and its surrounding province remain the highest in Thailand, however, prices in other areas of the Kingdom have spiked much more steeply than those in the capital. In northeast Thailand, the price of one popular dish was the highest in the country. The dish known as khao phat kaphrao, made with meat, basil, and garlic, was 62.2 THB in northeast Thailand. The average price of the dish throughout the country was 59 THB.

Thailand’s Ministry of Commerce had estimated that the prices of made-to-order food would rise by 7.1%. The 6.7% price spike almost matches the ministry’s prediction. Last month, the ministry said it planned to freeze prices on 46 items. These items included chicken and pork, among several other food items. Commerce Minister Jurin Laksanawisit said that he had instructed governors and commerce officials in all provinces to monitor the prices of goods, to prevent traders from hiking the prices of controlled products. But Thailand’s prices on several products, including made-to-eat foods, seem to keep rising.

[Sundance2020]

Petrol Prices in Bangkok reduced from July 08.2022



Good news for Bangkok motorists as the PTT Oil and Retail Business today announced the cost of petrol will be reduced from tomorrow (Friday) morning. The retail prices of petrol and all types of gasohol except E85 will drop by 3 baht per litre, E85 by 1.8 baht per litre, at 5am tomorrow. It’s not all good news for motorists unfortunately as diesel prices will remain the same. The retail prices in Bangkok and nearby on Friday will be…

– Gasohol E85 will be 35.34 THB per litre (-1.80 THB)
– Gasohol E20 will be 40.44 THB per litre (-3 THB)
– Gasohol 91 will be 41.28 THB per litre (-3 THB)
– Petrol (benzene) will be 48.96 THB per litre (-3 THB)
– Gasohol 95 superpower will be 47.04 THB per litre (-3 THB)

– Diesel B20 will remain at 34.94 THB per litre
– Diesel will be 34.94 THB per litre
– Diesel B7 will be 34.94 THB per litre
– Diesel premium B7 will be 46.36 THB per litre

[Xerxes]

Cost of electricity in Thailand could rise to 5 THB per unit by September

Electricity bills in Thailand could become more expensive than ever by September, according to a source at the Office of Energy Regulatory Commission (ERC). In the last 4 months of the year, the cost of electricity in Thailand could break the 5 baht per unit barrier for the first time, rising by 90 to 100 satang per unit. The official fee will be announced at the end of July. The ERC said the rising cost of imported gas used to generate electricity is the cause behind the steep rise in prices. Thailand is importing expensive Liquified Natural Gas (LNG) in replacement of low-cost natural gas from the Gulf of Thailand.

“We will have another meeting at the end of this week to discuss the price of electricity. The price of imported LNG is continuously rising… which is beyond our control. The ERC is rather concerned about it. The amount of gas available from the Gulf of Thailand remains unclear too. The Electricity Generating Authority of Thailand (EGAT) has forked out more than 80 billion baht in the previous quarter to subsidise the cost of electricity for the people of Thailand. The ERC may have to reduce the burden on EGAT by rising the price of electricity in general.”

The ERC’s main concern in ensuring energy security, said the source. Before thinking of the impact on cost of living in Thailand, the ERC must ensure that electricity in Thailand doesn’t run out. The uncertainty of natural gas production from the Gulf of Thailand is another huge concern of the ERC. The Erawan gas field is a low cost source of natural gas, but it is monopolised and has recently been taken over by a new concessionaire.
Previously, 1 billion cublic litres of gas from the Erawan gas field was produced for use in Thailand every day. However, since the Erawan gas field was taken over by a new concessionaire, much less gas from Erawan is being used to generate Thailand’s electricity.

The new concessionaire has not clearly stated exactly how much gas from Erawan will be produced for Thailand in future, which makes planning and management for the ERC even more difficult, said the source.

[Steve]

Is the Thai Baht falling in value?

Yes. And no. Depends on which currency you want to compare it to. Against the mighty USD, absolutely yes. In February this year, the USD was valued at 32.12 baht to the dollar. Now it’s 36.48 baht to the dollar. Good news if you’ve got USD and heading to Thailand.





































But the story isn’t the same against many of the other world currencies. In fact the USD has surged against almost every currency over the past 6 months, seen as a flight to the ‘trusted’ greenback as financial, stock and cryptocurrency markets crash in a worldwide slow motion train wreck since the end of last year.

Against the Euro, the THB has strengthened, from 39.28 THB to the Euro (it’s highest value over the past year), to 36.53 as of today. Much the same situation with the British Pound. The GBP has fallen from 46.41 THB to the Pound, at its highest over the past 12 months, to 43.19 THB now.

The Australian dollar, has had a slight rise, from 23.08 AUD to the THB at its lowest in the past 12 months, to 24.67 THB to the Oz dollar today. Same with the Canadian dollar (CAD) which has gone from 25.21 THB to 28.02 THB to the Canadian dollar today.

The Singapore Dollar (SGD) has also risen nearly 10% against the Thai baht since its lowest point in the past 12 months. Whilst the Japanese Yen has gone the other way, dropping nearly 20% against the Thai baht.

But the Governor of the 100% state-owned Bank of Thailand, Sethaput Suthiwartnarueput, says he is not overly concerned about the Thai baht’s current performance, noting that the ‘fundamentals’ of the baht and the Thai economy, generally, were in “good condition” and any similarities to the 1997 financial collapse are completely mis-interpreted.

So, if you’re a US citizen, visiting Thailand at this time, you are going to get record exchange rates. Whilst, if you’re from the UK or Europe, you are getting around 10% less baht compared to the high spot for your currency over the past 12 months.

[Logan]

Electricity prices soar 18% to 4.72 THB per unit from September 2022

Electricity prices are already at a record high rate of 4 baht per unit, topping an 8-year old record, and have now been approved to surge another 18%. When global oil prices rocketed up to US $110 per barrel in 2014, Thai energy prices hit 3.96 THB per unit. Coming out of the Covid-19 pandemic, the demand for all forms of energy has soared, pushing electricity costs to 4 baht and now, for the fourth quarter, 4.72 THB per kilowatt hour.

On Monday, the Energy Regulatory Commission posted on Facebook, declaring the approval of the 18% energy price hike. They announced it would be in effect for the last quarter of the year, from September through the end of December. A rise in the raw materials that help power Thailand is to blame, as demand increases and instability like the war in Ukraine hinders some energy production.

Thailand derives some of its electricity from domestic gas produced in the Gulf of Thailand’s Erawan gas block, but production has slowed, and reliance has increased on imported liquefied natural gas, which is much more expensive. Domestically produced gas like this costs about US $6 to $7 per metric million standard cubic feet per day, which import prices can be anywhere from US $25 to $50 per MMSCFD.

This increase in foreign gas reliance in turn drives up the price of the fuel tariff that is part of the electricity rate, which rose from 0.6866 THB per kilowatt hour to 0.9343 THB per KWh, a jump of over 36%. The unprecedented 18% hike in the electricity rates was originally slated to take effect on August 1,2022 but PM Prayut Chan-o-cha reportedly stepped in to delay the implementation. He pushed for the rate increase to be pushed back for as long as possible to try to find options to decrease the negative impact on poor people.

Now it looks like the fee increase will go into effect in the fourth quarter, but the Ministry of Energy is still working on programmes and solutions to reduce the effect on the people who can’t afford the inflation the most.

[Logan]

Instant noodles, a staple budget food, fighting to increase prices

There is perhaps no symbol more synonymous with living on a tight budget than dining cheap with a cup of ramen instant noodles. So it’s an extra kick for those struggling during this time of hyperinflation in Thailand and around the world that instant noodles manufacturers have requested expedited permission to raise prices on their product. The Internal Trade Department of Thailand is being petitioned by five major noodle makers to make a decision quickly to allow them to make up for rising production expenses by increasing the price of their instant noodles from 6 THB to 8 THB

Big names in noodles including Mama, Nissen, YumYum, Suesat, and Wai Wai have complained that ingredients like palm oil and wheat have grown costlier while the price of instant noodles have been stagnant since 2008. Prices for ingredients such as garlic and chili have risen somewhat, but the cost of wheat has doubled due to the Russian invasion of Ukraine, one of the world’s top exporters of the grain, and the price of palm oil has tripled.

The noodle consortium says the cost of making a pack of instant noodles has already gone up more than 1 baht per packet, so a proposed compromise of a single baht increase just won’t cut it. One brand, YumYum, says that this year is the first time in their 40 years as a business that they were losing money.

The director-general of the Internal Trade Department said that while a previous request was rejected, they are not blind to the plight of the manufacturers. But they say the department is stuck in the middle of struggling corporations and struggling shoppers, and they have leant towards freezing prices to try to prevent people being unable to afford to eat.

The department will weigh each request for a price increase on the factors of whether a manufacturer can sustain their production without the increase, and how to ensure that customers are as minimally affected as possible, and will do so on a case by case basis. Instant noodle manufacturers have hinted that if they are unable to increase prices to cover their swelling manufacturing costs, they will shift their focus to exporting their products to countries that don’t put any caps on pricing.

[Sundance2020]

Save power – government will pay half to clean your aircon



In order to help people struggling with the rising costs of electricity, the Thai government has offered to cover half the cost of having your aircon cleaned. A dirty air conditioner with a clogged filter can be unhealthy, and can significantly increase your aircon bill, so the Electricity Generating Authority of Thailand is repeating its previous “Clean Your Air for the Country” campaign. The programme aims to reduce the average customer’s electricity bill by up to 10% by getting their aircon to run more efficiently. EGAT will subsidise the cost of servicing one aircon unit per household, contributing 300 baht towards the 600 baht fee for the cleaning. The service is only available for the standard wall-mounted air conditioner that is common in most Thai households, and for units that are a maximum of 24,000 BTU.

In order to qualify, customers must be able to submit their national ID card along with any bill for electricity for their home for any month during this year. People who have taken advantage of this offer the first time the government offered it are not eligible to participate a second time. Employees of EGAT are also disqualified from taking part in the programme. Anyone wanting to participate in the campaign and take advantage of the 300 baht discount offer can register by the end of September in six different stores and chains. HomePro, PowerBuy, Blue Port, the Emporium, the Mall, and Siam Paragon will all be able to sign up those who qualify.

Those who want the discount on aircon cleaning can go to any of those stores and make an appointment to set the date and time of the servicing. The 300 baht co-pay is required at the store at the time the appointment is set.
For more information, customers are advised to call (062) 273 9396 or (062) 273 9335.