Fuel Fund executive committee seeks to retain diesel tax subsidy
The Fuel Fund executive committee is to recommend that the newly appointed energy minister retains the diesel tax subsidy to keep the price of diesel fuel at no more than 32 baht per litre.
The committee has asked the Office of the Oil Fuel Fund to closely monitor the global energy price situation, especially as winter approaches in the Western nations, which will lead to a high demand for energy for heating purposes and lead to a rise in both oil and LPG prices.
Global oil prices, particularly diesel, have been steadily increasing in recent weeks. As of August 28, the Oil Fund was supporting diesel at an average of 5.65 baht per litre, which is relatively high.
However, the Fund committee is trying to maintain the diesel price at not more than 32 baht per litre, pending the new government's policy on this matter.
To date, 55 billion baht of the fuel fund has been used, leaving another 55 billion baht available for the new government to utilise according to their new policy on this matter.
"If the global diesel prices continue to rise by the end of the year and the government aims to keep the diesel price from exceeding this level, various factors must be considered. The Ministry of Energy has already prepared guidelines to present to the new Minister, acknowledging that one important measure is assistance from the Finance Ministry in reducing the excise tax on diesel," Wisak Watanasap, director of the Fuel Fund executive committee said.
