The Energy Policy and Planning Office on Monday resolved to raise the subsidy for diesel from Bt0.20 per litre to Bt0.30, following recent hikes in global oil prices.
This is to keep the pump price below Bt30 per litre.
Due to the increase, the Oil Fund's expenses will rise from Bt109 million a day to Bt126 million. As of February 2, the fund showed a loss of Bt3.44 billion.
According to Bloomberg, hedge funds boosted their bullishness on crude oil by the most in six months as the US economy grew and frigid weather bolstered demand for heating fuel. Oil surged 1.8 per cent to US$97.41 on January 28, a four-week high, on US consumer confidence and more bullish housing market figures.