Minister paints grim picture on oil price
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.
He was responding during a meeting of the House of Representatives on Thursday to a question by Kittikorn Lohsunthorn, Lampang MP from Pheu Thai Party, about the high price of oil and possible solutions.
Meanwhile, there are transport groups that are demanding diesel price be reduced from 30 baht to 25 baht.
US President Joe Biden has called up Opec leaders to consider an increase in production.
Since December 2021, crude oil price has gone up by 4 baht per litre, diesel by almost 6 baht per litre, and petrol by 5 baht.
Supattanapong explained that the ministry has frozen the price of diesel fuel at not over 30 baht per litre, which is supported by 3.79 baht per litre from the Oil Fund, totalling 7 billion baht per month.
After spending 20 billion baht to control oil price, the Oil Fund is already 15 billion baht in debt and is preparing to borrow another 20-30 billion baht to continue to freeze the price, he said.
Regarding reduction of bio-oil, he said the government is considering new measures to take care of the people step by step. If the price drops suddenly, it will affect the oil palm farmers. When the formula was changed to B5, the price of palm oil would be about 11 baht, which was at a level that didn't affect farmers too much.
He added that there was also a reduction in the energy conservation fund that used to collect 25 satang per litre. Today, it's almost gone down to zero, he said.
