"Oil Fund"

Kla Party leader Korn Chatikavanij said on Wednesday that the 3-billion baht pledged by PTT Plc to the oil fund would not help bring down oil price sustainably.

The board of directors of PTT Plc has approved a contribution of 3 billion baht to the special oil fund, which has been used to reduce the cost of the living burden on the public, PTT president and chief executive officer Auttapol Rerkpiboon said on Tuesday.

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.

Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow said on Wednesday that he expected a deal this week with oil refineries for them to contribute voluntarily to the Oil Fuel Fund.

The price of diesel will be maintained at 34.94 baht per litre despite the surge in global oil prices, the Oil Fuel Fund’s Executive Committee said on Monday.

The government has managed to talk operators of oil and gas refineries into contributing up to 8 billion baht per month from July to September to the Oil Fuel Fund.

The price of diesel may hit 38 baht per litre now that the Oil Fuel Fund’s deficit is getting wider, an official said Tuesday.

The Finance Ministry will this month borrow THB30 billion from certain commercial banks to boost liquidity of the Oil Fuel Fund, a senior ministry official said on Tuesday.

The Fuel Fund Executive Committee is expected to increase retail diesel price by one or two baht next week as the fund’s deficit has soared to over THB60 billion, a well-informed source said.

The Energy Ministry is seeking ways to mitigate the impact of rising diesel price in May, Energy Minister Supattanapong Punmeechaow said on Wednesday.

A planned salinity tax on high-sodium foods will not be introduced this year, the Excise Department has confirmed. The department explained that the new tax would be shelved to allow time for the economy to recover.

Energy Minister Supattanapong Punmeechaow warned that the current situation was a precarious, almost critical, as demand for oil has grown rapidly due to the global economic recovery, tensions in international politics, the cold weather, and Opec Plus’ refusal to hike output.