According to data from the Energy Policy Administration Committee (EPAC), chaired by Mr. Auttapol Rerkpiboon, Minister of Energy, made an announcement to reduce the retail prices of all types of diesel and gasoline by 0.50 baht/liter. Still, TISCO Securities indicated in its analysis that it does not expect this decision to have a negative impact on oil retailers.
Diesel Oil The price reduction from 31.94 baht/liter to 31.44 baht/liter will be supported by decreased contributions to the Oil Fund, currently at 1.00 baht/liter, allowing retailers’ profit margins to remain unchanged.
The financial position of the Oil Fund has improved significantly, with losses declining from 77.5 billion baht at the end of 2024 to only 17.8 billion baht at present. Most remaining deficits are from the LPG account, while the oil account has returned to a surplus.
Gasoline The price cut also reflects the recent global decrease in gasoline prices, which dropped by $2.2 per barrel week-on-week (WoW). However, retailers are required to lower pump prices without affecting their profit margins.
Analysts continue to recommend a “hold” for both PTG Energy Public Company Limited (SET: PTG), with a fair value of 7.40 baht, and PTT Oil and Retail Business Public Company Limited (SET: OR), with a fair value of 12.70 baht.
