BANGKOK: Thailand's oil demand is expected to rise 4.4 percent in 2016, up from an earlier forecast of 2.6 percent, due to higher consumption of gasoline and diesel and an improving economy, Thai Oil Plc, the country's largest oil refiner said on Tuesday.
Thai Oil is the refinery flagship of PTT Pcl, the country's largest energy firm, with a share of 33 percent of domestic refined oil products.
Total oil demand rose 7.4 percent in the first quarter this year, versus 6.6 percent growth in the whole 2015, according to a company presentation.
"Lower oil prices and better economy helps boost oil demand this year," Chatchai Siriwit, manager for investor relations, said during a quarterly earnings presentation.
Demand for jet fuel is forecast to rise 4.4 percent this year, up from an earlier forecast of 2.6 percent, driven by an increasing number of foreign tourists, he said.
Demand for gasoline is projected to rise 7.1 percent this year, while those for diesel at 2.2 percent.
Fuel oil demand is projected to rise 14.7 percent this year after a surge of 28 percent in first quarter and a drop of 1.4 percent in 2015, it said.
Thailand's military government has struggled to revive economic growth after the junta seized power in May 2014 when domestic oil demand grew 1 percent that year.
Thailand's economic recovery remains fragile with the central bank cutting its 2016 growth forecast to 3.1 percent from 3.5 percent. The economy grew 2.8 percent in 2015, up from 0.8 percent in 2014.
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