The government respond to falling oil prices.
The Fiscal Policy Office [FPO] recently forcast GDP would grow by 4% and export growth of 3.5% this year,well below the Commerce Ministry’s projection of 5%. Drop in oil price would be positive for economy as a whole even though the government stood to lose an estimate 40 billion baht in revenue from value-added tax on imported oil if the price stabilised at $50 a barrel. The imported petroleum or oil value accounted for almost 10% of GDP.
The Energy Ministry proceed with the 21st round of bidding on concession for oil,gas exploration, production and remains attractive to many inventors. Despite strong opposition from activists and the global crude price’s decline to US$60 a barrel. The Mineral Fuels Department is accepting bid proposals for the 21st round until Feb 18. There are 29 blocks of offshore and onshore areas up for bid. The first three years will require an estimated 5 billion baht in investment.
Prime Minister Prayut Chan-o-cha also urged state agencies to speed up restructuring and improvements in their regulations to facilitate cooperation and partnership with the private sector, be it export stimulus, energy or agricultural reform, in order to increase the incomes of low earners. State agencies should reconsider which part of their spending has benefited from the sharp drop in crude oil prices and earmark more funds for investment.