Thai regulation drives out another oil retailer

摘要

Bangkok—Malaysia’s state-owned oil and gas company Petronas’ recent decision to exit the retail oil business in Thailand has again underscored the difficult operating environment created by what participants say is the government’s excessive market intervention. Due to long-standing price regulation, oil companies make a razor-thin marketing margin on their pump sales of around Baht 1.50 (5 US cents) per liter, around 3-4% of pump prices. That is described by industry executives in Thailand as being among the lowest in the world.