Govt should subsidize diesel cost for industry as prices climb after Saudi refinery attack: expert
Experts warn that the retail price of oil is likely to rise Bt1-2 per litre following the weekend attack on Saudi oil facilities, with some calling on the government to subsidize the price.
The world oil prices jumped 15-19 per cent on Monday following Saturday’s attack..
“It could translate into retail oil prices going up Bt1-2Bt per litre tomorrow, warned “Manoon Siriwan, an expert on energy issues, on Monday.
The government should dip into the Oil Fund with a Bt0.50 per litre subsidy for diesel, which is largely consumed by industry, transport , business and farmers at up to 65 million litres daily, he said.
The Energy Ministry has the authority to make the decision.
Manoon said the Oil Fund should not be used to subsidize motorists who use petrol.
The Energy Minister has called a meeting for Monday to assess the impact of higher oil prices.
Manoon said the high prices could be ongoing if it takes the Saudi government many weeks or months to restore their oil production. About 5 per cent of world supplies have been cut due to the attack, with market speculation contributing to the resultant spikes, he added.
