Diesel prices in Thailand have increased by 50 satang per liter starting on Apr 20 as a temporary excise tax reduction expires. The Energy Policy Administration Committee (EPAC) announced that the one-baht excise tax cut would not be extended, pushing the new pump price to 31.44 baht per liter, up from 30.44 baht. To mitigate this increase, a 50 satang subsidy has been authorized, bringing the adjusted price to 30.94 baht per liter.
The decision came after the Oil Fuel Fund Office (OFFO), responsible for managing fuel subsidies, indicated its ability to support a partial subsidy despite the end of the tax break. Veerapat Kiatfuengfoo, director-general of the Energy Policy and Planning Office and secretary to EPAC, cautioned that further price adjustments might be necessary due to the Oil Fuel Fund’s significant debt, which totaled 103.6 billion baht as of April 8. The fund has already expended substantial amounts to subsidize various fuel prices, including diesel, gasohol, gasoline, and liquefied natural gas.
Amidst concerns over global crude oil price volatility, largely due to geopolitical tensions in the Middle East, policymakers are strategizing to buffer the domestic market from such impacts. To help ease the transition for consumers, the excise tax on diesel will revert to its standard rate of 6 baht per liter, while the existing subsidy stands at 4.17 baht per liter. (NNT)
