Oil Fuel Fund Committee approves fuel price freeze until Sept 30

Thailand's Oil Fuel Fund Executive Committee has approved a plan to freeze fuel prices for more than three months and adjust them downward in line with global market trends. This move includes revising the fund contribution rates to accommodate an upcoming excise tax hike.

Pornchai Jirakulpaisan, Director of the Office of Policy and Strategy at the Oil Fuel Fund Office (OFFO), revealed on Wednesday that the committee has analyzed the potential impact of the planned increase in excise taxes on benzene and diesel products. It considered the fund’s capacity to absorb reduced revenues while minimizing the impact on consumers’ cost of living.

Following in-depth analysis and a review of all factors, the Oil Fuel Fund is expected to sustain these measures until the end of fiscal year 2025, or September 30, 2025, he said.

However, if a fuel price crisis arises that severely affects retail prices in Thailand and leads to liquidity issues for the fund, the committee will propose that the Ministry of Finance, through the Excise Department, consider lowering fuel taxes to stabilize domestic retail prices.

According to Pornchai, the committee has agreed to adjust the fuel fund contribution rates in two key areas:

• Reducing fund contributions equal to the amount of excise tax and local administrative taxes, in line with Cabinet resolutions.
• Reviewing and adjusting appropriate marketing fees, effective from May 7, 2025.

Pornchai further stated that the reduction in fund contributions will decrease daily oil revenue from approximately 393.97 million baht to around 344.40 million baht—a reduction of 49.57 million baht per day.

“Based on the current analysis, we believe fuel prices can be kept steady until September 30. If global oil prices fall, retail prices will be adjusted downward accordingly,” he added.

As of May 4, the Oil Fuel Fund reported a deficit of 47.779 billion baht, comprising:

• 2.54 billion baht deficit in the oil account
• 45.239 billion baht deficit in the LPG account

Pornchai emphasized that the committee continues to operate under the Oil Fuel Fund Act B.E. 2562 (2019), with a commitment to transparency, accountability, and the public interest. All measures aim to ensure domestic price stability and maximize benefits for the people and the nation.