Extension in diesel excise tax mulled
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said on Friday that the Finance Ministry will ask for the Cabinet's approval for the extension of diesel excise tax waiver.
He said that the waiver would be extended for another one month and then the Cabinet will review the position.
The waiver, which results in a cut in excise tax from Bt5.31 per litre to Bt0.005, will end this month.
Diesel is now retailed at Bt31.33 per litre. Without the waiver, the diesel oil price would have been nearly Bt37 per litre.
Oil prices are on the rise as European Union is imposing sanctions on Iran over its nuclear enhancement programme. According to Thai Oil's analysis, in March, the European Union's crude oil imports from Iran will decline by over one third from the 2011 average, or to 425,000 barrels a day. It will substitute the cut by imports from Saudi Arabia, Iraq and Russia.
Dubai crude oil yesterday stood at US$116.11 per barrel.
Deputy Finance Minister Thanusak Lek-uthai said that given the spike in oil prices, it is not the right time for the resumption of diesel excise tax.
He also proposed a negotiation with PTT Plc, the country's largest retailer which operates over 1,300 fuel stations, to have the marketing fee cut.
