Oil Fund cuts contribution today

 Energy Minister Wannarat Charn-nukul however said that the contribution cut would remain for only one month, and after that the retail prices will be gradually increased, presumably 60-70 satang for each increase. He added that if oil prices are on the upward trend after a month, the ministry will reconsider if the subsidy period would be longer than 1 month.

 "Eventually, subsidies will go, or the public would consume fuel inefficiently and this would affect Thailand's oil imports. Moreover, the Oil Fund involves the government revenue. If it's poorly managed and runs deficits, it would be inappropriate," he said.

 The Oil Fund now sits on Bt25 billion in cash and accumulated subsidy burden of Bt10 billion. The oil contribution cut would require a budget of Bt5.4 billion a month.