The Land Transport Federation of Thailand said on Thursday its members plan a huge hike in freight charges next month, when the government stops capping the diesel price at 30 baht per litre.
The chairman, Apichart Prairungruang, said truck operators would increase cargo rates by 15-20% on May 1 when the government is due to stop limiting the price of diesel to 30 baht per litre and let it gradually rise to 32-35 baht per litre.
"The break even diesel price (for truck operators) is 25 baht per litre. We have borne the burden. As the government has not introduced any assistance measures, freight charges will be adjusted accordingly.
"Every baht of the increment will mean a three-percent hike in freight charges. This will cause manufacturers to raise their product prices by at least 20%," Mr Apichart said.
He asked the government to cut the excise tax on transport-related oil to 0.20 baht per litre, which is at the same level as jet fuel, and suspend the biodiesel content in diesel, to lower the diesel price by 1.50-2.0 baht per litre.