recovery. For example, “ All producers may need to lift production by 15% next year from 4,100
million cubic feet par day at present. PTTEP produces about 33% of all the gas output in Thailand.
The need for more supplies reflects a second year of economic recovery, particularly in the power,
industrial and transport sectors” (Bangkok Post,6 November 2010 ). Moreover, the government
support to recent price increases and also the decision to allow oil companies to increase prices
within a band of 10% augurs well for the industry. This step is likely to reduce government
interference and provide some autonomy to oil companies when it comes to increasing petrol and
diesel prices in order to protect margins. Further, the duty cuts are also likely to result in reduced to
follow recoveries by way of subsidies on LPG and kerosene.