Land Transport Association decides to hike fees from Friday

“The reduction of excise tax will not bring down the price of diesel at gas stations under THB32 per litre as many have hoped, as the Oil Fuel Fund is still in deficit and needs money to cover its losses, which could exceed THB100 billion soon,” association president Apichart Pairoonrueng said on Thursday.

“This will force transport operators to increase their fees to cover the increased cost.”

Apichart noted that some operators have already adjusted their fees up since May 1, when the government ended the THB30 per litre cap on diesel, allowing the price to go up according to the market.

“For every THB1 increase in the diesel price, transport operators will have to shoulder a 3 per cent cost increase,” he pointed out. “Therefore, even with the diesel price capped at THB32 per liter, operators are still suffering compared to before May 1.”

Apichart urged the government to temporarily remove biodiesel from circulation until the fuel price returns to normal.

“As the cost of biodiesel is extremely high, at up to THB70 per litre, removing it will help bring down the price of diesel by THB1.5 to THB2 per litre,” he revealed.

“The price of palm oil has risen to THB11-12 per kilogram, which is higher than the government’s guaranteed price, while the demand in global markets is still high. The government should use this opportunity to promote the export of palm oil instead of using it to make biodiesel.”

Apichart added that the association has received complaints that around 50,000 trucks have been carrying twice the load permitted by law in order to save costs, and that he has ordered all operators to coordinate with highway police to identify the culprits by submitting evidence such as video clips or photos.