The Ministry of Treasury has been requested to extend the diesel tax cut for another two months to cover the transitional period of government.
During a recent cabinet meeting, Caretaker Prime Minister Gen Prayut Chan-o-cha instructed the Treasury Ministry to prolong the diesel tax reduction for another two months as the deadline is approaching on July 20. The extension proposal is said to help cover the transitional period of government while the new government takes office and implements new measures to address the issue.
Although the extension could lead to an added loss of around 10 billion baht, Energy Minister Supattanapong Punmeechaow stated that the financial situation of the Oil Fuel Fund has recently improved and that the government has options to maintain or reduce the price of diesel for the public. He stated that if the tax reduction is not extended, the oil fund mechanism can be used to lower diesel prices since it still has around 63.4 billion baht to improve the fund’s liquidity.
The deadline on July 20 was extended from the previous deadline on May 20. The government has reduced diesel tax on seven occasions in order to alleviate the financial strain caused by volatility in global oil prices caused by financial crises and ongoing conflicts. (NNT)
