The Board of the Oil Fuel Fund Office has approved a plan to borrow 30 billion baht to support the government's move to cap the diesel pump price at 30 baht per litre.
Sompop Patana-ariyangkul, spokesman for the Energy Ministry, said on Tuesday that the board, chaired by Energy Minister Supattanapong Punmeechaow, approved the loan proposed by the Oil Fuel Fund Office at its meeting on Monday.
The loan would provide liquidity to cap the diesel price at 30 baht per litre and limit the impact of rising global oil prices on the cost of living. The loan proposal would be put to the cabinet for approval, he said.
"Diesel is a basic factor for business. If its price is too high, it will affect ...the prices of transport, products and services," Mr Sompop said.
The Energy Ministry would closely supervise the spending of the loan, he said.
The 30-baht target diesel price does not meet the demand by the Land Transport Federation of Thailand for the price of to be set at 25 baht per litre.
Representatives of the federation said members have started parking large numbers of trucks along roads nationwide to give emphasis to their demand. The protest would escalate in mid-month unless the government listens to them.
The price of high speed diesel, the most commonly used diesel, ranged from 29.44 to 30.34 baht per litre on Tuesday, depending on the retailer.