Economist signals risk from oil shortages

Thailand faces a heightened risk of oil shortages as the country relies more heavily on imported energy than most of its regional peers, according to the research centre of Kiatnakin Phatra Financial Group (KKP).

- SOMRUEDI BANCHONGDUANG

Thailand is dependent on energy imports, equivalent to around 6.5% of GDP, which is the highest in the region.

By comparison, Singapore and South Korea each record net energy imports of about 4% of GDP. As a result, surging global oil prices would affect Thailand more severely than its regional peers, said KKP chief economist Pipat Luengnaruemitchai.

A spike in global oil prices would also push up inflation, as energy carries a relatively large weight in Thailand's consumer basket.

Higher energy costs would raise living expenses and weaken household purchasing power. Lower-income households would be particularly affected, as they tend to rely more heavily on energy and spend a larger share of their income on energy-related costs.