IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

An Analysis of Petroleum Fiscal Regime in Thailand

Listed author(s):
  • Puree Sirasoontorn


    (Faculty of Economics, Thammasat University, Bangkok, Thailand)

  • Napon Suksai


    (Faculty of Economics, Thammasat University, Bangkok, Thailand)

Registered author(s):

    This paper analyzes the Thai petroleum fiscal regimes, so called Thailand I and Thailand III, under the concession system for granting petroleum exploration and production rights. The analytical issues include the sharing of benefit between the government and concessionaires, assurance of the government’s share of the profits, and the incentive for entrepreneurs to invest and generate efficient operation. The findings reveal that the Thai petroleum regimes are not flexible because only one set of fiscal instruments is applied. The regimes cannot be adjusted to either the context of project fields and operation or the uncertainty of petroleum price. However, the regimes could generate sufficient sharing of benefit although the share of government cannot be firmly assured. The Thai government revenue is based only on the royalty and petroleum income tax; it does not receive as much a share of the profit as the neighboring countries have been receiving under their sharing systems, which is based on production and the project contracts granted according to types of petroleum and exploration as well as production areas. The Thai petroleum regimes, however, give enough incentive to investors. If the Thai government continues the concession system, it should consider applying an additional fiscal instrument, i.e. “supplementary income tax” to increase government revenue.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Kasetsart University, Faculty of Economics, Center for Applied Economic Research in its journal Applied Economics Journal.

    Volume (Year): 20 (2013)
    Issue (Month): 1 (June)
    Pages: 23-46

    in new window

    Handle: RePEc:aej:apecjn:v:20:y:2013:i:1:p:23-46
    Contact details of provider: Phone: (662) 579-1544
    Fax: (662) 579-957
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:aej:apecjn:v:20:y:2013:i:1:p:23-46. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chatrat Hemmawat)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.