Cabinet backs Russian diesel

Prime Minister Samak Sundaravej said the oil would be sold to 200 cooperatives around the country at Bt8 per litre below the domestic price.

The government will import 300 million litres of diesel per month. Any cooperatives interested in the cheaper fuel have to prepare import documents and submit their requirements to the government.

"Cooperatives have to acquire oil ships and prepare oil tanks. Truck drivers can set up a cooperative to benefit from the cheaper oil as well," said Samak.

The premier shrugged off criticism that Russian diesel oil is of low quality due to its relatively high sulphur content.

"The diesel oil has a sulphur ratio of 0.02 per cent [by weight] to 0.5 per cent, compared to the domestic level of 0.035 per cent. Moreover, Russian oil has been distributed in South Korea, China, Vietnam, Philippines and Cambodia," he added.

Boonchai Chokwatana, president of Saha Group, fully supports the diesel imports. He said this would be a new supply source and help reduce diesel prices.

"High sulphur? Right now, it's more important to pay attention to oil prices than the environment," he said.

Samak said his Cabinet had decided to delay its approval for the lease of 6,000 NGV buses because the government had to focus on the economic relief package at yesterday's meeting.

Meanwhile, the Cabinet endorsed the appointment of Thirachai Phuvanatnaranubala as secretary-general of the Securities and Exchange Commission. Thirachai's term was terminated on July 7, under the amended Securities and Exchange Act.

Earlier, there was a rumour that Thirachai would replace Tarisa Watanagase as Bank of Thailand governor.

The Cabinet also endorsed the appointment of Yuthana Thapcharoen as governor of the State Railway of Thailand, which has been leaderless for two years.