BANGKOK, May 10 – Finance Minister Korn Chatikavanij on Monday said he had instructed stage agencies concerned to monitor local retail oil prices to ensure they are reduced in the same direction as global oil prices.
Mr Korn said Thai government agencies must keep a close watch on domestic oil price movements to prevent oil retailers from taking advantage of fuel consumers following oil price plunges in the world market.
He conceded that Thailand’s domestic oil price reduction will take time: although global oil prices dropped nearly 10 per cent in one day Thai oil companies bought fuel supplies for stock when prices were high.
The finance minister said retailers must wait until oil supplies in stock are sold out before they can start reducing their prices.
Mr Korn reaffirmed that the Ministry of Finance would not review the diesel oil excise tax reduction measure already scheduled until September.
Should the diesel price drop below the capped level at 30 baht per liter, the money gained from the difference should be kept in the State Oil Fund to use for energy stability in the long run.
He said the Excise Department must collect an appropriate oil excise tax post-September unless it wants to resume tax collections at a ceiling level.
