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Retail diesel price set for another hike as oil fund deficit soars


The Fuel Fund Executive Committee is expected to increase retail diesel price by one or two baht next week as the fund’s deficit has soared to over THB60 billion, a well-informed source said.

The source said the committee, chaired by Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow, is now considering the next increase after the price was raised by THB2 to THB32 per litre on May 1.

The source said the next increase would be inevitable as global oil prices are still rising.

As of May 3, the Oil Fuel Fund was still subsidising diesel oil price at THB10.21 per litre, the source said. Without subsidy, the retail diesel would have been THB40, the source added.

“Next week, diesel price may rise by THB1 or THB2 per litre,” the source said.

“Money is flowing out of the fund at about THB10 per litre of subsidy. The fund is using about THB20 billion for the diesel price subsidy. Although the government has borrowed THB20 billion to top up the fund, it will be used up within a month,” the source said.

According to the source, the Oil Fuel Fund has a bank deposit of THB780 million and THB11.575 billion deposited with the Comptroller-General’s Department as of May 1.

He said the fund now has an accumulated deficit of THB60.993 billion — THB28.217 billion deficit for oil subsidy and THB32.776 billion for gas.

In April, the fund spent THB22.242 billion in subsidy — THB20.779 billion for oil subsidy and Bt2.174 billion for gas.

Published : May 04, 2022

By : THE NATION