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With immediate effect, the contributions that retailers have to pay the Oil Fund for the sale of every litre of all fuel products would be cut by 40 satang per litre.

 Energy Minister Piyasvasti Amranand said though octane-95 petrol's contribution is not lowered, retailers would not opt to increae the price of such fuel. He believed that retailers would raise the prices of all fuel.

 

To Santi Vilassakdanont, chairman of the Federation of Thai Industries, the 40 satang cut is too small and manufacturers would rather expected a Bt1 per litre cut.

 "The 40 satang could not help much, psychologically or economically. But the Bt1 cut would really help particularly those in the transportation sector," he said.

The contribution cut is in line with the soaring oil prices. It is believed to slightly delay the full impacts on the Thai economy.

 Piyasvasti noted that retail oil prices tend to rise further and if the ministry will review if contribution needs to be cut again. The 40-satang cut will delay the Oil Fund's Bt5.5 billion debt repayments from December 17 to the end of January.

 The minister noted that the decision would not affect the planned funding scheme for the rail development, as the Oil Fund simply needs one more month to start collecting money for such development.

 He also asserted the necessity of the nuclear power plant. "If the next government does not want it, it would need to readjust the power development plan," he said.