No plan to hike oil fund levies
Energy Minister Arak Chonlatanon has affirmed that the ministry has no plan yet to increase contribution from diesel and petrol sales to the Oil Fund, as the retail price of motor fuel is still high.
Currently, the retailers of 95- and 91-octane petrol contribute Bt1 per litre to the fund, while the rate for gasohol 95 is Bt1.20 per litre. The fund subsidises the price of gasohol 91 at 40 satang per litre and E20 gasohol at Bt1.80 per litre. The fund also subsidises cooking gas and natural gas for vehicles. As a result, the fund suffers negative cash flow.
Arak said the burden would be eased after the National Energy Policy Council resolution to seek a new loan of Bt20 billion to support the Oil Fund.
The Energy Business Department said the country imported 160,000 tonnes of liquefied petroleum gas in February, incurring a subsidy cost of Bt3.807 billion. From March 1 to 21, 95,000 tonnes of LPG was imported, requiring subsidy of Bt2.730 billion.
The former chief executive officer of PTT, Prasert Bunsumpun, said the government should raise the LPG price to reflect the actual global price. If it continues to subsidise the product, this will add to the burden of the Oil Fund, he said.
The National Energy Policy Council passed a resolution on March 23 last Friday to ease the fund’s burden by seeking loans from financial institutions and/or issue bonds for Bt20 billion with a repayment period of three years. Earlier the government borrowed Bt10 billion to boost the fund’s cash flow.
