The Finance Ministry has recommended using the Oil Fuel Fund to sustain the subsidy for retail diesel prices, noting the fund has sufficient capacity to support the government's diesel subsidy programme.
According to Deputy Finance Minister Krisada Chinavicharana, the ministry is monitoring global oil prices and the government's revenue collection from May to June before deciding if assistance remains necessary.
"The ministry has not yet submitted any proposals to the cabinet to extend the diesel excise tax cut of one baht a litre after this measure expired on April 19," Mr Krisada said.
"The government is managing the Oil Fuel Fund to oversee diesel prices. The fund still has sufficient resources to support the diesel subsidy."
He said the ministry and the government must consider oil price fluctuations in the global market based on several factors and the government's revenue collection, which is expected to peak between May and June.
If the revenue collection is large enough, it may be possible to continue the subsidy, said Mr Krisada.
However, this decision must be based on necessity and the global oil market outlook, he said.
The Oil Fuel Fund Office (Offo) said last week it would continue to subsidise retail diesel prices if the government decides to end the diesel excise tax cut of one baht a litre.
The move aims to prevent oil price fluctuations as geopolitical conflicts in the Middle East are expected to drive up global crude oil prices, according to Wisak Watanasap, director of the Offo.
He did not reveal the amount of any new subsidy sourced from the dwindling fund.
The fund posted an accumulated loss of 104 billion baht as of April 8, after using 56.4 billion to subsidise diesel, gasohol and gasoline prices, as well as 47.2 billion for subsidies for liquefied petroleum gas prices.
The government's pledge to keep diesel prices below 30 baht a litre led to a subsidy programme using the fund that ended on March 31.