Price of premium-grade diesel set to rise after subsidy move
The Energy Policy Administration Committee on Friday approved in principle a measure to stop subsidising premium-grade diesel, which is mostly used in luxury cars, to reduce the burden on the oil fund.
The Oil Fuel Fund Office (OFFO) will draw up the measure and propose it for approval at the next committee meeting, said Energy Minister and committee chair Supattanapong Punmeechaow.
If the measure is approved, users of diesel-powered luxury cars will likely pay more for premium diesel while the price of regular diesel will remain the same thanks to the oil fund’s subsidy.
The government is subsidising diesel to cap the price at Bt30 per litre amid a surge in the global price of fuel.
The committee asked oil companies to limit the cost of marketing diesel at Bt1.4 per litre from April 1 to June 30 to soften the impact of the global fuel crisis.
Meanwhile it also approved a plan to increase the price of household liquefied petroleum gas (LPG) price three times to reduce burdens on the oil fund. The fund has spent Bt28.09 billion subsidising LPG over the last two years.
The stepped price rise of Bt1 per kilo will be carried out once a month from April to June. This will see the price of a 15-kilo canister of LPG raised from Bt318 to Bt333 in April.
Supattanapong added that without the subsidy, a 15-kilo canister would cost Bt463 as the Russia-Ukraine war is driving up global energy prices.