Deutsche Presse Agentur

Bangkok, July 24:

Rising oil prices and slowing economies are forcing Southeast Asian countries to pursue a host of energy saving measures: cut down on air-conditioning, turn off night billboards and encourage car pools. But the austerity measures, while moving in the right direction, are expected to prove a drop in the bucket when compared with the vast amounts spent by some of the same governments on fuel subsidies to keep the people happy. The Thai government, which has spent $2.2 billion on fuel price subsidies since January 2004, was forced to remove government control on petrol prices in October. It retained partial curbs on the more politically

sensitive diesel last month. On July 12, the government approved energy-saving measures designed to save the country $162 million this year. This included closing petrol stations between 10 pm and 5 am, turning off billboards after 10 pm and ordering civil servants to use gasohol in their cars. High oil prices led to a hike of 37 per cent in Thailand’s import bill during the first five months of 2005 to $48.8 billion, leaving the country with a trade deficit of $6.6 billion. Thailand’s economy, which grew at an impressive six per cent in 2004, is looking at a much slower growth rate of four per cent this year. The energy situation is politically threatening for Indonesian president Susilo Bambang Yudhoyono, who earlier this month postponed state visits to China, Thailand and Brunei due to a domestic fuel shortage.