The Oil Fuel Fund Office (OFFO) has allocated 1.2 billion baht to repay the first installment of its debt to financial institutions, due in November. Despite this repayment, the fund faces a substantial deficit of 111.66 billion baht as of July 28.
According to OFFO Director Wisak Watanasap, the deficit is divided into 64.06 billion baht in the oil account and 47.59 billion baht in the liquefied petroleum gas (LPG) account. The fund has been subsidizing the retail price of diesel under the government’s policy to cap fuel prices to help alleviate financial burdens on the public. The measure has been extended multiple times, each for three-month periods.
Currently, the diesel subsidy stands at approximately 0.4 baht per liter, keeping the retail price under 33 baht per liter. This subsidy will continue until October and will cost the fund around 26.73 million baht daily. The Cabinet has set a limit on subsidies, prohibiting the fund from subsidizing more than 2 baht per liter.
The upcoming debt repayment in November includes 1 billion baht in capital and around 200 million baht in interest. The Oil Fuel Fund had previously borrowed approximately 105.33 billion baht to stabilize the country’s fuel prices, with the Finance Ministry acting as guarantor.
The fund will continue to monitor the energy situation closely after the current subsidy measure expires on October 31. There is an expectation that global energy prices will rise at the start of winter. Additionally, ongoing geopolitical tensions between the United States and China could impact Thailand’s fuel imports due to higher prices. (NNT)
