Bt46-bn package to aid low-income group

The government is spending Bt46 billion to relieve the burden of high oil price on the public  by launching  six measures to last  six months starting August 1.

"This will help reduce the burden for low-income earners," said Prime Minister Samak Sundaravej, who chaired a press conference yesterday to announce the package. He said the temporary measures would help before the government embarks on mega-project investments.

Finance Minister Surapong Suebwonglee, who is also deputy prime minister, said the government had scrapped the planned coupons for the poor, citing difficulties

in defining the beneficiaries as

well as the problem of transparency when distributing the coupons.

"These measures are targeting those who are affected. Eventually, the benefits will be Bt300 to Bt400 per month," he said. "These measures are designed to help everyone get through the crisis, particularly the urban and provincial poor."

He is certain that the measures will boost purchasing power and that this will help Thailand achieve the economic-growth projection of 6 to 7 per cent this year.

Top among the measures is a cut in gasohol and diesel excise taxes. At present, in every litre of gasohol, consumers pay Bt3.31 as excise. It is Bt2.30 per litre of diesel.

The gasohol excise tax has been cut to 1 satang per litre and this will further widen the gasohol and premium petrol price gap to Bt8 per litre.

Diesel excise is cut to zero. The government will lose Bt29 billion of excise income from this measure.

Energy Minister Poonpirom Liptapanlop said retail oil prices could be cut on July 25, as the ministry needs seven to nine days to inspect inventories.

"The tax measure should be an incentive to increase consumption of alternative energy, and the Energy Ministry will ensure that supplies of biodiesel and gasohol are sufficient," she said. "Yet, despite the measures, we would like to ask everyone to reduce their consumption."

The government also promised to suspend price adjustments on cooking gas for household use for six months. Meanwhile, the government will shoulder the water and power bills for households consuming less than 50 cubic litres of water and 80 units of power per month. It will also pay half the power bills for the next 70 units.

For the urban poor, commuters of non-air-conditioned buses in Bangkok will have a free ride on 800 buses run by the Bangkok Mass Transit Authority, which will lose Bt1.4 billion. All third-class train services on every route nationwide will be free of charge, costing authorities Bt250 million.