Energy authorities are planning to continue the diesel price capping scheme, which is set to expire this Sunday, according to the Energy Policy and Planning Office (EPPO).
The capped diesel price is subsidised by the state Oil Fuel Fund, which has accumulated a deficit of 98 billion baht as of Thursday.
EPPO director-general Veerapat Kiatfuengfoo said energy authorities are expected to request approval from the Finance Ministry during an upcoming cabinet meeting. This would decide whether to reduce the excise tax or allocate funds from the state budget.
The retail price of diesel is subsidised by the fund at 4.17 baht per litre, while an excise tax of 5.06 baht per litre is collected.
The diesel price capping policy has been in effect since September last year when the previous cap of 30 baht per litre was extended to the current rate. Despite fluctuations in global oil prices, the policy has been extended several times to address the cost of living concerns.
The move followed a statement released on Thursday to force state-run Electricity Generating Authority of Thailand (Egat) to maintain the capped electricity price at an average tariff of 4.18 baht per kilowatt-hour (unit).