Thailand’s Oil Fuel Fund has decided to maintain the current retail price of diesel at 35 baht per liter, in an attempt to help mitigate the high living cost amidst global oil price fluctuations.
According to Oil Fuel Fund Office (OFFO) director Wisak Watanasap, the global diesel price on 22 August was 137.52 U.S. dollars per barrel, which was 6.56 dollars higher than that of the previous week at 130.96 dollars.
This price increase is driven by the increasing petroleum demand in the United States, as its economy shows recovery; coupled with the European Union’s ban on Russian oil.
The Thai government is now providing a partial subsidy for diesel prices exceeding the 35 baht per liter ceiling, to which the government covers 50% of the excessive amount. This measure has been in effect since July, and will continue through September this year.
OFFO’s financial balance as of 21 August was at negative 118.01 billion baht – 76.74 billion baht in red for the oil fund and 41.27 billion baht in red for the LPG fund. (NNT)
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