Govt steps up diesel subsidy
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The government has decided to maintain diesel subsidy, as the Energy Policy Administrative Committee today approved the Oil Fund's subsidy of Bt0.60 per litre.
Energy Minister Arak Chonlatanon said today after the EPAC meeting that the subsidy will take effect from Aug 18.
"This is to alleviate the cost of living for consumers as well as the operating cost of business operators, who are affected by the increases in global oil prices," he said.
Currently, oil retailers, except Chevron which operates Caltex fuel stations, quote diesel at Bt29.99. Since the Abhisit government, the governments have maintained retail diesel prices below Bt30 per litre, to avoid increases in transportation costs and hence the cost of living.
The National Energy Policy Committee recently resolved to extend the diesel excise tax waiver until Aug 31. That helps shave the price by over Bt5 per litre.
The committee today also resolved to reduce the Oil Fund's levy on petrol and gasohol products, except E85, by Bt0.50 per litre. This will reduce the Oil Fund's levy on 95-octane petrol from Bt6.50 to Bt6 per litre and 91-octane petrol from Bt5.20 per Bt4.70. The Oil Fund's levy on gasohol 95 will drop from Bt1.30 to Bt0.80. This resolution also means that gasohol 91 will be subsidised at Bt1.50 per litre while E20 subsidy will be increased to Bt1.80. Subsidy for E85 is maintained at Bt12.70 per litre.
