The cabinet is expected to consider today the Energy Ministry's measures to lower electricity bills in a bid to ease the cost of living following the spike in energy prices caused by the Russia-Ukraine war.
A cabinet source who requested anonymity said the government wants to take cautious actions in tackling the energy problem, in part to ensure any budget spending yields maximum efficiency.
The government hopes the upward pressure on energy prices will decline once spring arrives in Europe and lowers heating needs.
The government recently introduced two measures to peg the price of diesel at 30 baht per litre, using the Oil Fund to subsidise the retail price of diesel, along with a cut in the excise tax on diesel by approximately half, or 3 baht per litre. The excise tax reduction is scheduled to remain in place until May 20.
The source said the government's diesel excise tax reduction and the use of the Oil Fund can help the government maintain the retail diesel price ceiling at 30 baht per litre for two months, during which time Europe will move on from winter and the pressure on energy prices will subside.
A previous estimate found if the global price of oil hit US$120 per barrel, the retail diesel price in Thailand would soar to 40 baht per litre if these two state measures did not remain in place.
The cabinet recently approved the Oil Fund borrowing an additional 30 billion baht out of a maximum of 40 billion baht as part of its measures to deal with the rising price of diesel.
The Oil Fund currently has losses of 17 billion baht.
Earlier a Finance Ministry source who requested anonymity said the Russia-Ukraine conflict, which has pushed up global oil prices, has raised the ministry's concerns that it will have to inject additional funds to subsidise the retail price of diesel to keep the price cap at 30 baht per litre.