Thailand: Put energy into policy

Rising fuel costs from the almost daily ascent of world oil prices are feeding a vicious circle of economic problems which threaten the country.

No one has escaped the inflation spiral, as everything from rice to travel has become more costly, more scarce, or both. Thailand can do almost nothing about the global problem of high oil prices. It is logical, therefore, that the government deal with this nationwide problem by coming up with new and inclusive policies on energy and transport. Unfortunately for the country, the government has done no such thing.
Airlines worldwide are near desperation. In Thailand, the “temporary” fuel fees, handling charges and other extra charges now almost equal the cost of most flights. Budget airlines are slamming passengers with charges, even for having a suitcase. US airlines – the ones not forced to sell off their whole business to rivals – have simply begun to abandon aircraft that do not get the best fuel efficiency.

If commercial airlines are in trouble, commercial ground carriers are caught in a far worse bind. It often is said that Thailand runs on six or 10 wheels – meaning buses and vast fleets of lorries that transport almost everything we eat and wear. Last week, truckers in the Northeast figured they have parked at least 4,000 of 10,000 lorries. Many small operators have gone broke, and some transport companies are surviving only because they have secondary businesses.

There also are advantages, of course. Airplanes fly and trucks run only when full, ensuring the best use of available fuel and roads. But villages and outlying suburbs also need stores to be stocked and markets to have fresh food. It is easy to make flights efficient to big-ticket cities and tourist destinations, but everyone in the provinces deserves decent transportation, especially by a state-owned airline. The market has a role to play, but the government must assure that all citizens are able to share available resources.

Bangkok Post