Diesel tops 50 baht as new 2.80-baht hike kicks in on April 5

Thailand will raise retail diesel prices again from April 5 after the Oil Fuel Fund Management Committee decided to reduce subsidies on key diesel grades, pushing the B7 retail price above 50 baht a litre and adding fresh pressure to transport and living costs.

Under the latest decision, the subsidy for diesel B7 will be cut by 2.61 baht per litre, from 20.71 baht to 18.10 baht per litre.

The subsidy for diesel B20 will also be reduced by 2.61 baht per litre, from 22.22 baht to 19.61 baht per litre.

The adjustment will lift the retail price of B7 by 2.80 baht per litre, from 47.74 baht to 50.54 baht per litre. B20 will also rise by 2.80 baht per litre, from 42.75 baht to 45.54 baht per litre, with the new prices taking effect on April 5.

The committee said the move was intended to keep retail prices more closely aligned with market conditions while protecting the liquidity of the Oil Fuel Fund, which has been under severe strain from prolonged intervention. The cut in subsidies is expected to reduce the fund’s daily outflow from 1.70875 billion baht to 1.49672 billion baht, a drop of about 212.03 million baht a day.