Thailand promises 1 baht drop in fuel prices for Songkran break
The reduction, made possible by the Oil Fuel Fund’s improving finances, aims to ease travel costs and boost domestic tourism
The Oil Fuel Fund Office (OFFO) has announced a 1 baht per litre reduction in the price of petrol and diesel in an effort to alleviate people’s burden and encourage domestic travel during the upcoming Songkran festival.
Energy Minister Pirapan Salirathavibhaga said the decision was made by the OFFO Executive Committee on Monday based on the general downward trend in global oil prices and the improving financial health of the Oil Fuel Fund.
The reduction will be implemented in two phases – a 50 satang cut on March 28 and another 50 satang reduction on April 4.
Pirapan, who also doubles as deputy prime minister, said this two-phase approach aims to minimise disruption for fuel service providers, while ensuring a positive impact on consumers.
“This is a Songkran gift for the public, when thousands will drive upcountry, with diesel vehicles being the biggest consumers,” the minister said. “The reduction aims to reduce travel expenses and to stimulate domestic tourism.”
Despite the Oil Fuel Fund’s outstanding debt of more than 80 billion baht, Pirapan said he was cautiously optimistic about the global oil prices potentially shifting downwards in May and June this year. He said the fund will continue subsidising fuel prices by an average of about 100 million baht per day until unforeseen circumstances arise.
The OFFO has reported a consistent improvement in the fund’s finances thanks to stable crude oil prices in Saudi Arabia. The fund’s deficit has dropped from 75.9 billion baht in early January to 60 billion baht as of March 23.
Pirapan reiterated the fund’s commitment to maintaining stable and fair prices as well as operating with transparency and accountability. He also said that the price of household LPG gas will remain unchanged for now, with a review planned for the end of March.
As for power tariffs, efforts are underway to potentially reduce prices for the May to August period, though complexities within the power sector pose a challenge. Discussions are ongoing regarding the “pool gas” structure, with the aim of reducing the cost of electricity without negatively impacting users in the industrial sector.
Pirapan went on to say that a collaborative approach is being taken and industry stakeholders consulted to ensure a balanced and equitable outcome. He said that though the issue is complex with many parties involved, he will do his best to continue working towards solutions that benefit the public.
The minister added that draft laws on oil trade regulations and security reserves have been completed and are under review.
