Finance Ministry not worried about Oil Fuel Fund’s finances as it guarantees THB150-bn loan

As of August 14, the fund had accumulated a deficit of 177.4 billion baht – 76.52 billion baht deficit in oil subsidy and 40.88 billion baht deficit in LPG gas subsidy.

The fund has been accumulating a monthly deficit of 20 billion baht from March to June owing to the ongoing Russia-Ukraine war.

Krisada Chinavicharana, the Finance Ministry’s permanent secretary, said providing this guarantee will not create a burden on the ministry as the Oil Fund will be responsible for repaying its debts.

“The fund has many ways of managing its finances, so its debt-repayment potential is not worrisome,” he said, adding that the ministry has guaranteed a loan for the fund before.

He added that Thailand will have at least 550 billion baht in cash reserves at the end of fiscal 2022 on September 30.

In the first 10 months of fiscal 2022 (October 2021-July 2022), the government generated 2.03 trillion baht in revenue, up 5.8 per cent compared to the 2021 fiscal year.