"Diesel"

The Land Transport Association of Thailand will hike transport fees by 15 to 20 per cent from Friday (May 20) despite the Cabinet’s decision on Tuesday to further reduce the diesel excise tax by THB5 per litre for two months after the current THB3 cut expires on May 20.

The Fuel Fund Executive Committee voted on Wednesday to retain retail diesel oil price at THB32 per litre until May 22, a senior official said.

The Cabinet on Tuesday approved a deeper cut in excise tax on diesel from THB3 to THB5 per litre for two more months, the government spokesman said.

The Thai economy will not recover quickly even though exports are likely to expand, Finance Minister Arkhom Termpittayapaisith said on Wednesday.

Prime Minister Prayut Chan-o-cha said on Wednesday that the Cabinet would deliberate next week on whether to extend the cut in diesel excise tax to help maintain its retail price.

Monday’s meeting of the Oil Fuel Fund executive committee agreed to fix the price of diesel at 32 baht per litre for this week, said Oil Fuel Fund Office (OFFO) director Wisak Watanasap.

Motorists in Bangkok and other provinces flocked to petrol stations to fill up their fuel tanks on Saturday ahead of an increase in the price of diesel.

Prime Minister Prayut Chan-o-cha asked truck operators on Thursday to be understanding, saying the government has run out of money after capping the diesel oil price at THB30 for months.

The Energy Ministry will announce on Thursday the new price structure for diesel oil that will be come into effect after the ministry ends the THB30 price cap.

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.

Bus fares will not be increased once the government stops subsidising diesel and removes the 30-baht per litre price cap from May 1, the Department of Land Transport said.

The Land Transport Association of Thailand is considering hiking transport fees to cover increasing costs after the Cabinet decided to remove the 30 baht per litre cap on the price of diesel from May 1.