Diesel price expected to drop to THB28 per litre next month
The Energy Policy and Planning Office (EPPO) on Wednesday approved the move to limit the marketing cost of diesel fuel to not over THB1.4 per litre and cut down biodiesel formulas to just one from December 1, 2021 to March 31, 2022.
“The move is expected to reduce the retail price of diesel fuel to THB28 per litre from the current THB29-30 per litre,” EPPO director-general Wattanapong Kurowat said.
“There are currently three kinds of biodiesel: B7, B10 and B20 that has 7, 10 and 20 per cent respectively of palm oil mixed with diesel oil. From December 1 only B7 biodiesel will be available.”
An EPPO committee, chaired by Energy Minister Supattanapong Punmeechaow, met on Wednesday to discuss the strategy to lower the diesel price amid the rising global cost of fuel due to increasing energy demand in many countries following an economic recovery from the Covid-19 situation.
Last week truckers under the Land Transportation Association of Thailand drove their vehicles to the Energy Ministry headquarters in Bangkok’s Chatuchak district to urge the government to reduce the fuel tax by THB5 baht per litre so that the diesel price could be capped at THB25 per litre.
The Finance Ministry, however, rejected the proposal, maintaining that the THB5 cut will cost the government THB150 billion in lost revenue per year, and that it cannot find revenue from other sources to compensate for this loss.
“The EPPO will monitor the situation closely and try to keep the retail price of diesel oil under THB30 per litre by implementing several measures, including using around THB4 billion per month from the Oil Fuel Fund to subsidise the diesel fuel price,” Wattanapong said.
“We will also work with other related agencies to limit the impact of this new policy on oil vendors and palm oil farmers,” he added.
The EPPO meeting on Tuesday also agreed to hold off raising the price of liquefied petroleum gas for household use so people won't be faced with an extra financial burden while the economy recovers from the Covid-19 crisis.