In an interview with Singaporean daily The Straits Times Pornchai said, “Thailand has so far failed to attract overseas traders of crude oil and oil products because of taxes and other regulations.”

“It’s a long way to go because there are seven more current laws relating to taxes and oil exports regulations that must be changed. Without [the] law changes, the country’s tax charges are not competitive with Singapore,” added Pornchai.

The official admitted the high tax-rates on imported petrol is to protect state-owned energy company PTT Plc, the only active trader of oil and petrol in the country. Importers also have to endure “regulations on oil-trading transactions” said the official.

Thailand introduced Sichang Island and the Sriracha district as tax-free zones for oil exports in January this year. The government also cut corporate income taxes for oil-trading companies to 10% from the previous 30% in an attempt to woo customers.