The committee of the state Fuel Oil Fund resolved to start the gradual increase in the diesel price from May 1 with the first increment of two baht per liter.
The resolution will end the government’s previous policy to cap the local diesel price at 30 baht per liter and the oil fund committee planned to raise the new price ceiling of diesel to 35 baht per liter. The cabinet earlier agreed that the oil fund would subsidize half the diesel price increment above 30 baht.
The weak baht and the global diesel price at US$145 per barrel resulted in the diesel cost of 40 baht per liter. Without a gradual increase, the local diesel price would soar to 35 baht per liter right away.
The oil fund committee decided to raise the price by two baht per liter first on May 1 to 32 baht per litre and would monitor the price situation weekly. If further increases are necessary, each increment will not exceed one baht per liter and the end price will be 35 baht per liter.
From May 1, the oil fund will not subsidize premium diesel. At present, it subsidy for all types of diesel is at 9.55 baht per liter.
Besides, the fund will decrease its subsidy for E85 petrol by one baht per liter per week from May 1 from 3.53 baht to finally 0.53 baht per liter. (TNA)
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