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Government to pay 50% subsidy on diesel price exceeding THB30 a litre


The Energy Ministry is seeking ways to mitigate the impact of rising diesel price in May, Energy Minister Supattanapong Punmeechaow said on Wednesday.

He confirmed that the government would pay 50 per cent subsidy on diesel price exceeding 30 baht per litre from May 1. The previous policy, controlling diesel price at not more than THB30 per litre, ends on April 30.

He said the Commerce and Finance ministries are concerned that diesel price at THB35 per litre due to rising oil price would be too high.

"If we raise diesel price to 35 baht per litre, we have to monitor inflation and the impact on citizens, as transportation costs will rise immediately," he said.

He said the Oil Fuel Fund Office has prepared plans to tackle rising diesel price, such as raising diesel price to THB32 per litre along with monitoring the oil fund flow, discussing diesel excise tax reduction and determining diesel price based on Asean prices.

"If global fuel prices continue to rise, we have to evaluate how long diesel price can be maintained at THB32 per litre and whether there will be an extension on the diesel excise tax reduction period," he said.

He said raising diesel prices gradually and comparing prices with neighbouring countries are good ideas if the oil fund has to continue paying subsidies of more than THB10 per litre.

He added that the Energy Ministry has cooperated with the Finance Ministry to boost confidence among financial institutions on granting loans for the oil fund, expected to conclude by April this year.

According to the Energy Policy and Planning Office, the real diesel price is THB41.15 per litre.

Published : April 20, 2022

By : THE NATION