The demand for petroleum products: industrial sector in Thailand

• Main Author: Saengchan, Jerarak
• Format: Others
• Published: DigitalCommons@Robert W. Woodruff Library, Atlanta University Center 1987
• Subjects: Economics
• Online Access: http://digitalcommons.auctr.edu/dissertations/2181; http://digitalcommons.auctr.edu/cgi/viewcontent.cgi?article=3856&context=dissertations

The demand for petroleum product has been increasing rapidly in the industrial and transportation sectors in Thailand. This is due to economic growth and the increasing population. There is a need for more information to address the problem created by the increased demand for petroleum resources. The purpose of this thesis is to describe and examine the demand for petroleum product for the industrial and transportation sectors in Thailand. Demand is expressed as a function of price and the level of economic activities. Time-series data for Thailand will be used to estimate the parameters of a specified demand function for the period 1971-1981. The empirical results are consistent with the predictions of economic theory. More specifically, a positive relationship was found between quantities of each petroleum product used and the level of economic growth. We also found negative relationship between price and quantities of each petroleum used. Estimates of elasticities showed that prices are inelastic with respect to quantities demanded of gasoline, diesel and fuel oil. This indicates that gasoline, diesel and fuel oil are critical inputs in the industrial and transportation sectors.