Oil prices making life difficult in provinces

Higher oil prices are affecting provincial economies, pushing up bus fares and unsettling many businesses.

Suwit Pakakaew, owner of a second-hand car dealer in Trang province, said many people were trying to sell their cars but the number of buyers had fallen.

"In one month, I was unable to sell even one car," he said.

Before petrol rose to Bt40 a litre, he sold a few cars each month. To survive, Suwit cut expenses to prevent a cash flow problem.

In Satun, tour companies have cut the prices of their packages and are offering seafood at special prices.

"Tourists are also becoming more thrifty. They bargain for room rates," said Prakat Klaewthanong, manager of the Sinkiat Thani Hotel, which has maintained its room rates.

But the hotel now offers more amenities and tries to provide better services to attract guests.

Buses operating between Songkhla and Hat Yai have also been forced to raise fares between Bt5 and Bt7 from today. Non-air-conditioned buses will now be Bt23, from Bt18 before. Air-conditioned bus fare is now Bt32, up from Bt25.

Taxis on the same route now charge Bt40, up from Bt35.

Rojana Arunsakul, a provincial transport official, said operators were allowed to raise fares because of higher oil prices. She said the old fares had not changed since diesel was Bt18 a litre.

Fifteen truck operators in the Northeast yesterday signed a memorandum of understanding with the Software Industry Promotion Agency, software manufacturers and Maha Sarakham University to develop a transport-management programme for completion next year. The goal is to reduce the number of empty lorries.

Northeastern Transport Operators Association president Pramote Kongthong said they would now provide information on their load factors on two-way trips to the university.

During harvest season, most lorries will be fully loaded, but on their way back more than half of them carry no cargo. Pramote wants the software programme to cut the percentage of empty lorries to 30 per cent.