A Bangkok pump attendant
© AFP/File Pornchai Kittiwongsakul

BANGKOK (AFP) - "I spend about 1,000 baht (26.60 dollars) to fill up my car, which is twice the amount it used to be when the price of petrol was 17 baht a liter," said Ariya.

The 34-year-old said the four-hour drive to the ferry pier, where she would board a boat to Koh Chang, was unaffordable.

"I was worried when it gradually rose to 21 baht a liter but now, at almost 30 baht, I just think it's a pity to own a car."

Throughout Thailand, consumers and businesses alike are suffering the impact of soaring global oil prices which have broken 75 dollars a barrel.

Fishermen in Samut Songkhram province are struggling on little or no income as small trawler owners opt to stay in port. In an industry where diesel accounts for 70 percent of costs, heading out to sea is becoming a luxury.

"I didn't think the diesel price would get that high," said Pongthorn Chaiwat, secretary of the provincial fishing association.

Even if they could afford the fuel, there is not enough to go around.

"We can't find diesel at onshore or offshore pumps," Pongthorn said.

Thailand imports 90 percent of its fuel and consumes about 70 million liters a day, making its 63 million people particularly vulnerable to global prices, not only at the pump, but in almost every aspect of daily life.

Bus fares and other costs of living have increased as higher transport costs are passed on to consumers. And experts warn utility prices such as electricity will be next to increase, affecting both households and businesses.

"Now consumers are very cautious about their spending, buying only essential items," said Saowanee Thairungroi, dean of economics at the private University of the Thai Chamber of Commerce.

"That's not good for the economy after we have already seen a year-on-year slump in consumption in February."

An increase of one dollar a liter in the price of petrol would affect gross domestic product growth by 0.2 percent, Saowanee said.

"However, if oil prices stay high for only a short period of about a month, then the economy would not be seriously affected," she said.

That appears unlikely as the Iran nuclear crisis deepens.

Iran, the world's fourth-biggest crude producer, defied a UN deadline Friday to halt uranium enrichment in a move that could prompt UN sanctions and lead to a supply shortage.

And if the crisis were to result in military action with the United States, Thai oil firm PTT predicts prices could reach 100 dollars a barrel.

All of this is bad news for Thailand, where government officials and business leaders have already warned of how rising oil prices could hurt the country's economy.

Pornsilp Patcharintanakul, deputy secretary of the Thai Chamber of Commerce and Board of Trade, said "everybody has been affected", as oil prices had hiked the cost of living and decreased purchasing power by 10-20 percent.

"The baht has strengthened by seven to eight percent, while oil prices have reached 75 dollars a barrel and are likely to continue to surge," he told AFP.

Manufacturers are concerned about rising production and transportation costs, especially freight costs that would affect exports.

"Fuel costs are very critical for our competitiveness in the world market. We are looking at export growth of about 15 percent this year, not 17 percent as the government predicted," he said.

And Pornsilp said gross domestic product should grow by 4.5 percent at best.

On Wednesday, the Thai central bank slashed its growth forecast for this year by a half-point to 4.25-5.25 percent partly on the back of rising oil prices.

The government is likely to revise its growth forecast down next month from its present target of 4.5-5.5 percent.

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