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Published on April 23, 2008

The Nation

The committee was jointly formed by the Finance and Energy ministries to work out the proposed cut in the diesel excise tax, which is Bt2.3 per litre.

"The department collects Bt41.4 billion in diesel excise tax for the entire year. The Finance Ministry would need to weigh the pros and cons of lower revenue and expected benefits," the source said.

The working committee is composed of  both ministries' permanent secretaries, the Energy Business Department, the Excise Department, and the Energy Policy and Planning Office. It will start discussions today and present the results to the ministers. The results should be known this week, said Energy Minister Poon-pirom Liptapanlop.

The Energy Ministry is now gathering information on diesel consumption and the number of diesel-fuelled vehicles. The Finance Ministry will decide if the tax cut will be applicable to all users or only some.

Meanwhile, the Central Land Transport Control Committee resolved yesterday to have all public buses delay fare hikes.

Global oil prices have been moving up persistently. Yesterday, light, sweet crude for May delivery rose as high as US$118.05 (Bt3,715) a barrel in New York.

Shell Company of Thailand today raised prices of all

fuel products by 50 satang per litre. Diesel is now Bt33.44 while premium petrol is Bt36.09 per litre.

International Energy Agency (IEA) executive director Nobuo Tanaka warned that high oil prices could tip the world economy into recession.