Diesel price at 30 baht per liter until March 31.


Recently the government was about to consider reducing the excise tax on diesel to keep its price below 30 baht a liter to deal with the higher cost of living.

Minister of energy Mr. Supattanapong said the government has not yet considered additional borrowing for the state Oil Fund because it has enough funding to cap the diesel price at 30 baht per liter until March 31.

Though economists believe the ongoing outbreaks of Omicron worldwide will reduce global oil prices, the Oil Fuel Fund Office (Offo) still wants to carefully control diesel prices because the fuel is crucial for the transport and industrial sectors.

Diesel price fluctuations can affect the price of goods, putting a pinch on consumers when food prices are hiking, especially for pork.

The government will consider later whether the government needs to secure additional borrowing for the state Oil Fund after March.

The National Energy Policy Council chaired by Prime Minister Prayut Chan-o-cha approved on November 5 last year the borrowing of 30 billion baht to subsidize retail diesel prices.

The first batch worth 20 billion baht is slated to be secured this month while the second batch of 10 billion baht for later if the prices keep increasing.

Despite the government’s struggle to deal with the higher cost of living, Supattanapong said there has been no consideration of reducing the diesel excise tax to keep its price lower.

Energy authorities currently impose an excise tax on diesel of 5.99 baht per liter, but the Oil Fuel Fund Office is currently subsidizing the levy by paying 3 baht per liter.

Meanwhile, excise taxes on gasoline and gasohol, a mix of ethanol and benzene, stand at 5.2-5.87 baht per liter. E85, a type of gasohol with 85% ethanol, sees the lowest rate of 0.97 baht a liter.

Mirko Bennardo
Author: Mirko Bennardo


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