Government warns of asphalt price controls after steep rises

The price rises coincide with moves by major producers to suspend their operations for repairs and maintenance work on production lines.
Deputy Commerce Minister Sontirat Sontijirawong said that the ministry had asked that asphalt producers reduce their prices in response to the significant increases. If they fail to act, the government would intervene as the material is vital for the construction and infrastructure development sectors, the minister said.
In February, asphalt was quoted at Bt20,223 per tonne, against Bt10,593 in the same month last year.
With lower supply, demand has been high in the market. Enterprises should reduce their prices to reflect the real cost of asphalt, Sontirat said.
He said that a major producer that had suspended production for some time would resume operation in the next few weeks, helping the redress the supply-demand imbalance.
According to the ministry, the biggest producers control about 40 per cent of the market, with up to eight producers in total.