Oil Fund subsidy from diesel sales cut by Bt0.40 per litre
The Energy Policy and Planning Office (EPPO) yesterday announced a reduction in retailers' contribution to the Oil Fund from diesel sales by 40 satang per litre, resulting in a significant overall decline in contributions from Bt118 million per day to Bt9
EPPO also predicts that the price of liquefied petroleum gas (LPG) in the industrial sector will be maintained because of its high price in the world market.
Norkun Sitthiphong, permanent secretary of the Energy Ministry, said diesel contributions to the Oil Fund, as of today, would be cut from Bt1.50 to Bt1.10 per litre. The office will maintain the current retail price of diesel. No price adjustment has been made to other fuels.
The Oil Fund had negative value of Bt16.4 billion as of January 6.
Norkun said global fuel prices were increasing. On Monday, the closing price of crude oil in Dubai was US$106.60 per barrel, up $2.03 from the price on December 10. The price of 95-octane petrol was $112.01 per barrel on Monday, up $4.56, and diesel was $125.47, up $3.76.
For LPG used in the industrial sector, the price is unchanged at Bt30.13 per kilogram. That is the ceiling price because of the high price of LPG in the world market, which is $955 per tonne or Bt33.7 per kilo. The price has been driven up by the huge demand for LPG during the winter season in the Northern Hemisphere. However, the price is below last year’s peak of $1,200 per tonne.
