Oil Fuel Fund deficit expected to reach THB100 billion by year-end
The Oil Fuel Fund deficit is expected to balloon to over 100 billion baht at the end of this year because of continuous subsidies on petrol and cooking gas, a source from the Energy Ministry said.
The source explained on Sunday that the recent subsidies on several types of petrol on top of the diesel oil and cooking gas subsidies were costing about 402.44 million baht a day.
At the current rate of bleeding, the source said, the fund deficit is expected to balloon to 100 billion baht by the year-end.
On October 31, the Cabinet approved the Energy Ministry’s proposal to subsidise the prices of gasohol petrol for three months, from November 7 to January 31.
On November 2, the Fuel Fund executive committee announced a cut in Gasohol 91 price by 2.50 baht per litre, Gasohol 95 by 1 baht per litre, E20 and E85 petrol by 80 satang per litre.
The retail prices were cut by excise tax rate reduction and lowering the contribution from gasohol petrol sales to the oil fund.
The reduction of the contribution led to the Oil Fuel Fund losing about 11.19 million baht per day, getting only 66.37 million baht per day from gasohol sales, compared to 74.56 million per day.
The source explained that before the cut in gasohol retail prices, the fund was already spending about 200 million baht per day to subsidise the price of diesel oil to maintain the price of 30 baht per litre.
It is also spending about 12.44 million baht per day to subsidise the price of LPG gas, the source added.
While it was now receiving contribution from gasohol petrol sales at 66.37 million baht per day, the fund was spending 190 million baht per day in gasohol price subsidy.
As of November 5, the fund’s deficit was 75.6235 billion baht – 30.185 billion for oil and 45.440 billion for LPG.
The fund’s highest-ever deficit was 130 billion baht in the middle of last year before it gradually lowered the deficit to 60 billion baht in June this year after it cut the subsidies on diesel oil.
