The rise in energy usage during the first quarter of this fiscal year can be attributed to the lifting of various restrictions, as well as the country’s recovering economy. According to the EPPO, oil consumption is expected to increase by 12.9%.
Wattanapong Kurovat, the EPPO’s director-general, said that the commercial sector’s final energy consumption during the first quarter of this year was up by 9.2%. However, the electricity demand in the industrial sector decreased by 0.8% due to the reduction in the usage of liquified natural gas.
Wattanapong also noted that power plants have started using diesel and fuel oil to generate electricity, as the government recently decided to reduce the excise on these two types of fuels. The reduction in the excise on these two types of fuels is expected to help lower the cost of electricity generation.
The EPPO also noted that the government’s decision to remove disease control restrictions will boost oil consumption by 12.9% this year. It also projects that coal and liquified natural gas will increase by 6.8%. Although the high price of oil is mainly due to the refinery margin, Wattanapong noted that it could be lowered by 2 or 3 percent if the refiners reduce their margins.
