Fuel Shortage in Asia
I am always curious about what happens in other countries when there is an oil shortage. In this case it is fuel for cabs to cart westerners and Europeans around. For them, this is serious. No fuel, potentially no income from westerners transporting them. In Bangkok, Thais make a living shuffling westerners around. We have used cabs, etc. to get to places like “Cheap Charlies” in Bangkok.
Delivery bottlenecks coupled with panic buying is the main cause, say energy officials
“Bangkok Post – Fuel shortages persist despite adequate reserves,” Bangkok Post
Fuel remains scarce at many service stations across Thailand, even though reserves are more than adequate, amid continuing problems with delivery bottlenecks and unusually high demand, officials said on Thursday.
The Ministry of Energy surveyed 2,649 service stations from Sunday to Tuesday and found that 1,912 had completely or nearly run out of some kinds of fuel, said Wutthitat Tantivess, deputy director-general of the Department of Energy Business.
The survey found 241 stations were temporarily closed, while 496 remained fully operational.
The figures reflect slow deliveries of fuel and unusually high demand at filling stations over the past two weeks, amid fear that the Middle East conflict will push oil prices even higher, he said.
Mr Wutthitat said that Thailand’s imports of crude oil were continuing as usual, while denying online rumours that oil was being smuggled to Cambodia.
As of Thursday, Thailand had 5.06 billion litres of oil which was enough for 41 days’ use, he said.
In addition, delivery is confirmed for another 7.39 billion litres, with some already en route to Thailand. The additional amount would bring the total reserve to 100 days’ use.
Figures compiled by the ministry show that the amount of diesel consumed in Thailand over the past two weeks has surged to as high as 84 million litres a day, about 16 million higher than normal and above the maximum production capacity of 77 million litres. Authorities say that if the public stops hoarding, the situation will return to normal.
Visiting a fuel storage facility and petrol station in Pathum Thani on Thursday, Energy Minister Auttapol Rerkpiboon said some stations ran out of diesel because demand spiked very quickly and deliveries could not be accelerated to cope.
Prime Minister Anutin Charnvirakul, meanwhile, reiterated that the government has no problems with its oil reserves and has been able to order oil from many regions, making up for shortfalls of Middle East crude since the Strait of Hormuz was closed.
Around the clock operations
Fuel supplies to petrol stations are continuing and delivery hours have been extended. Tanker trucks are being allowed to operate in Bangkok around the clock.
Authorities also aim to keep fuel prices at refineries and petrol stations at the same levels to maintain normal fuel availability for industrial and construction sectors, Mr Anutin said.
However, he said, the government would have to allow prices to be subject to market mechanisms. He promised more measures to minimize the impacts on the public.
Authorities have begun increasing the diesel price in small steps from 30 baht a litre to 33 baht, in order to reduce the amount of money spent on subsidies.