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Diesel oil price to stay at THB32 per litre until May 22


The Fuel Fund Executive Committee voted on Wednesday to retain retail diesel oil price at THB32 per litre until May 22, a senior official said.

Kulit Sombatsiri, permanent secretary at the Energy Ministry, said the committee also retained the policy of managing the retail price in the range of THB32 to THB35 for as long as possible.

Kulit said the reduction of diesel excise tax by THB5 per litre for two months would help the committee in its management of the retail price to prevent it rising above THB35 per litre.

On Tuesday, the Cabinet approved a deeper cut in excise tax on diesel from THB3 to THB5 per litre for two more months after the current THB3 cut expires on May 20.

The Finance Ministry has projected that the subsidy would cost the government not more than THB20 billion in projected revenue. The government is using excise cut to try to stabilise the retail price of diesel, so that people would not be affected by the rising cost of transportation, which could inflate manufacturing costs.

Despite repeated protests by truckers, the government had earlier decided to cancel the capping of the retail price at THB30 per litre because its Oil Fuel Fund is bleeding and is almost dry.

Published : May 18, 2022

By : THE NATION