least 14 billion baht this year from subsidising domestic fuel prices on the order of the government. (US$1=33 baht).

Crude oil prices have risen more than 40% since the start of 2008. In the first four month of this year, PTT said it incurred a loss of 0.32 baht on each litre of diesel it sold.

The company has complained that the government has ordered it to sell over 120 million litres of fuel to bus operators, fishermen and farmers at below market price. The company is also writing losses from the sale of subsidised natural gas for vehicles.

PTT said it has been ordered to supply liquefied petroleum gas (LPG) to domestic consumers at US$320 per tonne. It would have preferred to export the product at the going spot market rate of more than US$900 per tonne.