The Land Transport Federation of Thailand (LTFT) is gearing up to petition Prime Minister Srettha Thavisin for a reduction in diesel prices, following a rise to 32.94 baht per liter at the end of May. The increase has prompted concerns among goods transport operators over escalating operational expenses.
The LTFT plans to present its case during the prime minister’s weekly cabinet meeting on June 11, advocating for a rollback of prices to 30 baht per liter to alleviate the sector’s financial burden. Thongyoo Kongkhan, the LTFT’s advisory chairman, highlighted the challenges of adjusting transport prices under existing customer contracts, which require negotiations for any change.
Amid economic adjustment, Thailand’s GDP growth was 1.5% year-on-year for the first quarter. The government has revised its diesel price ceiling policy, which was previously held at 30 baht per liter. The administration noted the proactive measure, enacted in April, reflects a responsive approach to economic conditions, allowing for a gradual increase in diesel prices.
The state’s Oil Fuel Fund, which has been subsidizing diesel to manage price levels, reported substantial losses totaling 111 billion baht, compounded by additional subsidies for liquefied petroleum gas (LPG) used in households. The LTFT argues that the timing for transport price increases is not ideal, suggesting that everyone baht increase in diesel prices can inflate operational expenses by 3-5%, making a strong case for government intervention to stabilize fuel costs. (NNT)
