Energy analysts say the new government should privatise state enterprises or at least reduce their stakes in them to less than 50% to improve efficiency and reduce political interference, starting with PTT Plc.
A newly formed group called Energy Reform for Sustainability, headed by former energy minister Piyasvasti Amranand, recommended PTT be privatised first as an example.
At present, the Finance Ministry, directly and indirectly through the Vayupak Fund, owns 65% of PTT.
Anti-government protesters led by the People’s Democratic Reform Committee have frequently accused PTT of monopolising the oil and gas market and inflating petroleum product prices.
“If other state enterprises were free from political interference, they could be more flexible in making decisions since they would not have to await cabinet approval,” said Mr Piyasvasti.
He also suggested PTT spin off its gas business before privatisation, which could enhance efficiency in the business.
The group consists of more than 40 former and existing executives of state
agencies, universities and private companies.
Members include Manoon Siriwan, Khunying Thongthip Rattanarak, Mettha Bunterngsuk, Anon Sirisaengthaksin, Praipol Khumsap, Thienchai Jongpeepien and Manu Leophairot.
The group also advocates energy price restructuring, termination of energy price subsidies, promotion of renewable energy, setting up a reliable energy data centre and streamlining the permit process under one agency.
Banyong Pongpanich, chairman of Phatra Securities Plc and a member of the group, said British Airways and BP Plc in Britain were state enterprises before being privatised under the Margaret Thatcher government, which resulted in improved operations and competitiveness.
If PTT continues to suffer political interference, its operations over the next decade could suffer like those of Thai Airways International, and the company would likely end up with massive debts like the State Railways of Thailand, he said.
Mr Banyong pointed to privatisation of PTT Exploration and Production Plc in 1992 as a success story, as the company has expanded from small exploration and production with 100 staff to a medium-sized E&P outfit with more than 4,000 employees.
The group also said using the Oil Fund to subsidise cooking gas and compressed natural gas should end, as the practice was not fair to petrol users.
Excise tax of 5.31 baht per litre on
diesel, which was eliminated in 2010, should be reintroduced, as the cut has cost the government 100 billion baht in revenue annually.
Furthermore, the Metropolitan Electricity Authority and the Provincial Electricity Authority should be under the Energy Ministry instead of the Interior Ministry in order to prepare for implementation of the national smart grid over the next 15 years, the group said.