Mass rally over surging oil prices
The government announced a long-expected hike in oil prices prompting around 20,000 unionists, political party leaders and university students o rally against the move at Sanam Luang in Bangkok a fortnight later.
Petrol prices at the pumps rose by 24%, diesel soared 72% and LPG for cooking climbed 33%. After the price hike premium petrol stood at 9.80 baht per litre.
In a nationwide broadcast, the government defended the increases saying they were inevitable following recent production cuts by oil exporting countries. The announcement came exactly one month after price rise rumours caused widespread panic at petrol stations throughout Bangkok. The government tried a ban on selling petrol in Bangkok on Sundays to curb use but many drivers simply filled up on Saturdays or left the city limits to fill their tanks.
‘We must ask whether we want the government to subsidise oil prices and face great economic instability or whether we must make sacrifices for the survival of the country,’ Prime Minister Kriangsak Chomanand said before stepping down in late February.
On March 19, shortly after taking office, Kriangsak’s successor Prime Minister Prem Tinsulanond increased state subsidies in a popular move that saw as much as 15% reductions in prices for kerosene, high-and low-speed diesel and cooking gas. Benzene prices remained unchanged.