The Finance Ministry says it does not oppose an Energy Ministry proposal that gives the state Oil Fuel Fund the authority to collect oil taxes.
According to Deputy Finance Minister Julapun Amornvivat, the proposal was put forward by Energy Minister Pirapan Salirathavibhaga, who wants the Oil Fuel Fund to be able to set oil tax rates independently.
Mr Julapun said the proposal is interesting, and if the structure is adjusted to give the fund the authority to collect oil taxes, allowing for public benefit, then it should proceed.
However, he said a joint discussion is required with responsible government agencies to gather their opinions.
The Excise Department is responsible for collecting oil taxes at present, and Mr Julapun said the current inclination among policymakers is to shift the energy structure towards clean energy.
Adjusting the way in which oil tax collection is structured should not affect this shift, he said.
Since 2004, Prime Ministerial Order No.4/2004 granted the Oil Fuel Fund the authority to oversee oil prices, with powers in terms of both finances used for price caps and setting oil tax ceilings as a tool to control oil prices domestically.
However, the authority to collect oil taxes remains with the Finance Ministry.
In 2019, the fund was stripped of the authority to set oil tax ceilings, leaving only the power to determine oil price caps.
According to a source from the Energy Ministry who requested anonymity, more discussion between the Finance and Energy ministries are needed on this issue.
There are talks about whether to revise the oil tax collection method to a levy system if the Finance Ministry agrees to it, the source said.
As of May 5, the fund reported a total loss of 109 billion baht, with 61.6 billion attributed to the subsidy for oil, including diesel and gasohol, and 47.6 billion for the liquefied petroleum gas (LPG) price subsidy.
On Tuesday, the cabinet endorsed initiatives aimed at easing people's energy expenses, covering caps on diesel and cooking gas prices, as well as subsidies for electricity bills for vulnerable groups.
Upon cabinet approval, diesel prices will be capped at 33 baht per litre, effective from April 20 to July 31, requiring a budget of 6 billion baht.
Retail LPG prices will be fixed at 423 baht per 15-kilogramme cylinder, effective from April 1 to June 30, requiring a budget of 500 million baht.
The government plans to provide a discount of 19.05 satang per unit of electricity to residential electricity users consuming no more than 300 units per month, from May to August, requiring a budget of 1.8 billion baht.
The prime minister ordered the utilisation of funds from the state Oil Fuel Fund, and if insufficient, funding will be allocated from the government's central budget reserves for emergency or necessary expenditures.