Lower oil prices to ease pressure on inflation
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TMB Analytics estimated that the petrol price cuts will increase the purchasing power by Bt176 per head per year on average, as total spending on fuel would be cut by Bt32 million a day or Bt11.86 billion per year.
This will lower inflation by 0.3 percentage point from the base case.
The business sector would also benefit from the adjustments, as 27 per cent of its fleet uses gasohol products. Energy cost will be cut by 0.14 per cent or Bt820 million per annum.
Meanwhile, chiefly because of higher excise tax on diesel, the excise and municipal taxes would rise by Bt6.8 billion a year from the price adjustments, while the Oil Fund's inflow will fall by Bt1.1 billion a month.
The adjustments are based on a combination of an increase in diesel excise tax, a decrease in the tax on petrol products, as well as a cut in the Oil Fund's levy.
