Oil Fund levy on diesel slashed by 50 satang per litre
The Energy Policy Administrative Committee today slashed the Oil Fund levy on diesel by 50 satang per litre, to ensure that retail price is below Bt30 per litre despite a spike in global prices.
Energy Minister Arak Chonlatanon said after the EPAC meeting today that the levy will be cut from Bt2.80 per litre to Bt2.30, effective from July 5.
He said that this needs to be done, to minimise impacts on the transport sector. The cut, which will reduce the Oil Fund's daily inflow from Bt221 a day to Bt192, will allow diesel prices to stay at the current level.
Under the Cabinet's May 14 resolution, the levy could be adjusted accordingly to global oil prices, inflation, alternative-energy promotion and the Oil Fund's financial position, he said.
At the latest development, all retailers except Shell and Caltex will tomorrow raise pump prices for petrol and gasohol products by 50 satang per litre, and maintain diesel price.
Shell, Caltex and Petronas's increases took effect today. They are now selling diesel at Bt30.33 per litre at stations in Bangkok and peripheral provinces.
Oil prices spiked on renewed tension over Iran's nuclear programme. Iran confirmed today that it had fired a number of missiles and has repeatedly threatened to close the Strait of Hormuz, which is the transit route for about a fifth of the world's oil supply, in retaliation for increased Western-led sanctions. A European Union oil embargo meant to pressure Iran over its nuclear program went into effect on Sunday.
On July 3, Dubai crude oil rose $0.78 to $95.08 per barrel. In Singapore, refined diesel rose $0.88 to $111.87 per barrel.
