THURSDAY, March 28, 2024
nationthailand

Sharp hike in subsidy to encourage consumption of B10 diesel

Sharp hike in subsidy to encourage consumption of B10 diesel

The Oil Fund Committee on Monday (September 30) resolved to sharply increase the subsidy for B10 diesel to Bt1.80 per litre from Bt0.95 per litre at present, the committee director, Viraphol Jirapraditkul, said.

The committee also cut by half the subsidy on B7 diesel to Bt0.05 per litre from Bt0.10 per litre. The subsidy on B20 diesel was also slashed, to Bt2.55 per litre from Bt4.80 per litre.
The resolution, which will take effect on October 1, will lower the price of B10 diesel to Bt22.99 per litre, cheaper than B7 diesel by Bt2 per litre.
The price of B20 diesel will be Bt22.99 per litre, Bt3 cheaper than B7.
The committee's resolution is in line with the National Energy Policy Committee's decision on September 11 that the Oil Fund be used to manage the price difference of diesel prices in order to encourage consumers to use diesel B10. This will help absorb the glut of crude palm oil in the market.
Consumption of B20 diesel is expected to decline following the committee's decision on Monday to cut subsidy.
As of July this year, B20 diesel consumption stood at 6.71 million litres per day.
The consumption of B10 is also expected to increase from 13,000 litres per day as of July this year.
People are also expected to use less of B7 and more of B10. The consumption of diesel B7 was 54 million litres per day as of July.
Viraphol said that the global benzene price had already fallen to the level before the recent drone attacks on two major oil-processing facilities of Saudi Arabia’s Aramco.
However, the global diesel price remains high. He believes that the retail benzene operators might reduce their retail prices in the future.

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