Oil Fund clears Bt92 bn debts

 Energy Minister Piyasvasti Amranand said as of Friday December 21, the outstanding debts stood at Bt61 million. Throuhgout this government term, debts of Bt50 billion had been paid out.

"The debts are cleared 2 years ahead of original schedule, due to the increase of oil sale contributions at times of low global oil prices. As such, the Oil Fund received a higher sum of Bt4 billion a month, from Bt2.3 billion earlier," Piyasvasti said.

 Following the final payment, the Oil Fund would maintain compulsory contributions from oil retailers, but for every litre sold, 50 satang of the contribution would be channeled to the Energy Conservation Fund to finance rail network construction. Together with the regular delivery of 18 satang per litre, the Energy Conservation Fund would receive about Bt1 billion a month from the Oil Fund.

 Meanwhile, the Oil Fund targets to save about Bt10 billion in its vault within December 2008, for emergency cases and for promotion of alternative fuels.

 As of December 21, oil retailers must contribute Bt4 per every litre of octane-95 petrol,  Bt3.30 for octane-91 petrol, 30 satang for gasohol 95, 20 satang for gasohol 91, and 70 satang for diesel. The Oil Fund subsidises biodiesel B5 at 10 satang per litre.

 At the current contribution rate on diesel, Piyasvasti said there is a room for the new government to reduce diesel price by only 2 satang per litre.

- The Nation