PTT Plc, expects to record a loss of two
billion baht for its retail oil operation this year after racking up a
combined 10 billion baht in losses over the past three years.
Chaivat
Churitti, PTT's senior executive vice-president, said the loss for the
company's retail business operation was due to the government's policy
for it to keep pump prices low as long as possible when oil prices are
rising.
''The past two governments said that as the national oil
flagship, it was our task to help shoulder motorists' burden by
freezing pump prices even though the costs spiked,'' he said. This
year, the company has capped retail oil prices since the end of January
until now. It reports a loss of about 20 million baht a day.
Mr
Chaivat said adjusting retail prices was difficult since the company
needed to balance the wishes of the government and PTT's shareholders,
which include the Finance Ministry.
Despite the accumulated
losses at the pump, PTT's 100-billion-baht net profit last year was
still the highest of any Thai company.
The profit surged mainly
due its oil refinery, petrochemicals and trading unit, which all
capitalised on the spike in global crude prices. Those gains easily
offset the loss on oil retail sales.
He said PTT group would
rather turn down offers from other oil companies for it to acquire
their assets. It has already expanded the number of fuel stations
through its acquisition last year of 117 Jet locations from Conoco
Phillips.
Its fuel stations already comprise a significant chunk
of the market, he said. More stations are necessary for PTT to sell
natural gas for vehicles to serve the government's policy to promote
alternative fuels, Mr Chaivat said.
PetrolWorld 280208
