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Oil Fuel Fund to borrow another 30 billion baht to keep price of diesel low

Oil Fuel Fund to borrow another 30 billion baht to keep price of diesel low

The Oil Fuel Fund Office will borrow another 30 billion baht more to increase its liquidity after its board meeting next week, the fund’s director, Wisak Watanasap, said on Wednesday.

Wisak said the fund’s board would meet on Monday to discuss its plan to borrow 30 billion more and would then submit the plan for Cabinet approval soon after.

Wisak said the fund had already borrowed 30 billion baht from Krung Thai Bank and the Government Savings Bank following an executive decree from the Finance Ministry guaranteeing the fund’s loans took effect last year.

The first loan reduced the fund’s deficit to 121.491 billion baht as of January 1, Wisak said.

The fund will continue to borrow from state-run banks, he said, adding that the fund had enough cash to

repay debts from oil subsidies until February or March.

Falling global oil prices in November and December helped the fund collect an additional 8 billion baht, Wisak said.

He said the fund will continue subsidizing diesel oil prices so that the retail price could be kept at 35 baht per litre until the government made a decision to raise or lower the price.

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