Diesel price will be increased by 50 satang tomorrow while the government may need to increase diesel price step by step. Because the Oil Fuel Fund is contracted by 103 billion baht.
Veerapat Kiartfuengfoo, director-general of the Energy Policy and Planning Office (EPPO) and Energy Ministry’s Spokesman said. The meeting of the Fuel Fund Executive Committee agreed to stabilize diesel oil price.
“Diesel oil price will be increased by 50 satang, effective tomorrow morning (Saturday, 20). The government may need to increase diesel oil step by step. Because the Oil Fuel Fund has continued to compensate for diesel oil price since last year. Currently the fund is contracted by 103 billion baht, dividing 56.40 of oil accounting, and 47.21 billion baht of Liquefied petroleum gas (LPG) accounting.”
He said the compensation to diesel oil price was 4.77 baht a litre or 8 billion baht a month. Without diesel oil compensation, the real price of diesel oil is about 36 baht a litre.
The last day compensate diesel oil price by the Finance Ministry
“If the government continued to compensate diesel oil price, the Oil Fuel Fund is expected to have more additional contraction which may affect financial discipline and credibility of the fund.”
Today (April 19) is the last day of a reduction of excise tax on diesel oil price by the Finance Ministry.
“In order to stabilize diesel oil price, the fund will continue to partly compensate diesel oil price in a bid to reduce burden among consumers. Diesel oil price will be increased by 50 satang tomorrow morning.”
He said the government may need to increase diesel oil price step by step. Because of the huge debt of the fund.
“The conflict between Israel and Iran again occurred today which might cause the rising of oil prices. However, the ministry will try to stabilize the appropriate oil price in order to alleviate burden among consumers. The ministry will seek other assistance measures which will be more clear next week.”
The cabinet meeting on Wednesday decided not to extend the one baht/litre excise tax cut for diesel. Which is due to expire today.
