Diesel to cost 35 baht per litre until Nov 30
The 5-baht cut on excise tax for diesel will remain in place for another two months to help alleviate people’s financial load.
A source said on Tuesday that the Cabinet had approved the Energy Ministry’s proposal to maintain the price of diesel at around 35 baht per litre from September 21 to November 30. The source added that this subsidy will cost the government about 1 billion baht a month.
In February, the government decided to reduce the excise tax from 5.99 baht to 2.99 baht per litre from February 18 to May 20.
On May 21, the 5.99 baht per litre excise was cut by 5 baht until July 21 to mitigate the impact of rising energy prices. The reduction was later extended to September 20.
As of July 24, the Oil Fuel Fund, which subsidises diesel, was 115.04 billion baht in deficit, the highest ever. The oil account has the biggest shortfall at 75.57 billion baht, while liquified petroleum accounts for a shortfall of 39.47 billion baht. The fund has a cash flow of about 3 billion baht.