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TUESDAY, October 04, 2022
nationthailand
Deal with refiners on oil fund contribution ‘expected Wednesday’

Deal with refiners on oil fund contribution ‘expected Wednesday’

TUESDAY, June 28, 2022

Negotiations with oil and gas refiners over their contribution to the Oil Fuel Fund are expected to conclude on Wednesday, Energy Minister Supattanapong Punmeechaow said on Tuesday.

Supattanapong spoke after meeting representatives from six refiners on Monday for talks aimed at boosting liquidity of the Oil Fuel Fund, which is 102.58 billion baht in debt from subsidising the price of diesel. Retail operators contribute 2 billion baht per month to the fund, but the government wants refiners to top that up with money from the refinery margin.

"We haven't reached a conclusion on how much refinery margin will be contributed to the Oil Fuel Fund and how to support the public sector," Supattanapong said.

He said the Energy Ministry would report back to Cabinet on progress in the talks but confirmed that the ministry did not need Cabinet approval to act on this issue.

The move to boost liquidity of the Oil Fund was in line with the Cabinet's new round of measures on June 21 to reduce people's cost of living amid the oil price crisis, he added.

He said the refinery margin will be used for subsidies to cap the retail price of diesel at 35 baht per litre and benzene at 1 baht per litre.

Supattanapong said his ministry has also asked PTT to contribute money from the gas refinery margin to the Oil Fuel Fund, and expects to receive 500 million to 1 billion baht per month from this source.