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Energy Ministry exploring more ways to subsidise diesel price


The Energy Ministry has been instructed to explore more ways in which the diesel price can be subsidised, Energy Minister Supattanapong Punmeechaow announced on Tuesday.

His statement came after the government said it would provide a 50 per cent subsidy on the diesel price exceeding 30 baht per litre from May 1. The present policy of capping the price at 30 baht per litre ends on April 30.

Supattanapong expected the oil fund to shell out up to 6 billion baht for the 50 per cent subsidy.

For example, if the diesel price is 40 baht per litre, the oil fund will pay 50 per cent of the extra 10 baht, so the price of each litre will be 35 baht at the pump, he explained.

 

Supattanapong said the Energy Ministry’s permanent secretary must check what the real diesel price is and how to reduce this price.

The permanent secretary would come up with a higher subsidy to reduce the diesel price to between 31 and 33 baht per litre, so it will not cause an impact on businesses, transport and motorists, he said.

“We will need to evaluate the situation in the next three months to get a clearer picture,” the minister pointed out.

“In the current situation, we have to check how we can allocate money, will this budget be enough and how the economy can recover,” he added.

Published : April 27, 2022

By : THE NATION