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Cabinet to consider extending diesel excise cut next week: PM


Prime Minister Prayut Chan-o-cha said on Wednesday that the Cabinet would deliberate next week on whether to extend the cut in diesel excise tax to help maintain its retail price.

Prayut said the Cabinet would consider the matter during its weekly meeting and a decision would be made before the current relief expires on May 20.

Currently, the excise rate on diesel oil has been cut by THB3 per litre to prevent the retail price of the oil from going higher.

Earlier, the government capped retail diesel price at THB30 per litre but after near depletion of the Oil Fuel Fund, the government decided to lower the subsidy rate, prompting the retail price to rise to THB32 per litre.

Prayut explained that he could not promise the THB3 cut in excise tax would continue because the Finance Ministry is still calculating how much the cut could be and for how long.

“We have to work step by step. We cannot just give a discount,” Prayut said.

He added that the government also needed tax revenue to solve several issues, including using it to boost the liquidity of the Oil Fuel Fund.

“We have to take everything into account. We need to wait and watch the situation for a few months before we can come up with a measure and we also have to consider the global energy situation,” Prayut added.

Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow, meanwhile, said he was considering extending the THB3 cut in diesel excise and he would propose it to the Cabinet on Tuesday.

Wisak Watanasup, director of the Oil Fuel Fund Office, said the Fuel Fund Executive Committee has reviewed the retail diesel price this week and resolved to maintain it at THB32 per litre for this week to help people cope with the rising cost of living.

Published : May 11, 2022

By : THE NATION