Friday, April 03, 2020

Oil Fund contributions trimmed to keep motor fuel prices stable

Apr 17. 2015
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By WATCHARAPONG THONGRUNG
THE NA

THE ENERGY Policy Administration Committee expects global oil prices to rise sharply after the unrest in Yemen ends, while it believes cutting contributions to the Oil Fund from all types of motor fuel - excluding E85 and E20 - is a way to stop retail fue

“Sufficient money has accumulated in the Oil Fund for price stability, and that allows for cuts in contribution rates to the fund,” Energy Minister Narongchai Akrasanee said after a meeting of the committee. “If global oil prices continue rising, contribution-rate cuts will be made again.”

On April 3, the price of Dubai crude climbed US$5.20 per barrel, while petrol increased $6.64 per barrel and diesel rose $3.97 per barrel.

To keep retail fuel prices where they are locally, the committee gave the green light to reducing the contribution of petrol 95 to the Oil Fund by 50 satang per litre to Bt6.65, while the contributions of gasohol 95 and gasohol 91 fell by 30 satang per litre to 95 and 45 satang respectively. Diesel’s contribution to the fund was cut from Bt1.05 to 45 satang per litre.

As a result of these cuts, service stations are not expected to increase prices despite the rise of global oil prices.

Some foreign oil traders, who recently raised retail oil prices by 60 satang per litre, are also expected to cut their retail prices.

After the contribution-rate cuts, the Oil Fund’s liquidity declined by Bt1.324 billion per month, dropping from Bt2.558 billion to Bt1.234 billion.

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