The Finance Ministry has not eliminated the possibility of extending the period set for the reduction of the diesel excise tax, says a ministry source who requested anonymity.
The source said the impact of the Russia-Ukraine war resulted in a sharp spike in global oil prices to $120-130 per barrel during the start of the war.
The price later fell to around $105 per barrel, which should be the peak level, with additional decreases likely, said the source.
The source said the ministry has yet to decide whether to extend the period covering the reduction in the excise tax on diesel beyond its scheduled expiry date of May 20 as the crude oil price situation may ease before that date. This would mean the government may not have to step in again to subsidise the diesel price.
If the global oil price continues to rise, the ministry might extend the period of the excise tax cut, but the reduced rate might be adjusted to 1.50 baht per litre, instead of 3 baht per litre, the source said.
The cabinet endorsed the reduction of the diesel excise tax by 3 baht per litre for a period of three months -- from Feb 18 to May 20 -- to alleviate the impact of rising oil prices on the business and public sectors.
The source said the excise tax cut during this period is estimated to cost the government 17.1 billion baht, though there was a higher than expected revenue contribution from state enterprises during this period to help offset the loss.
If the government decides to extend the tax-cut period, it would need to seek other income sources to offset the loss in excise revenue, said the source.
The government wants to meet its revenue target of 2.4 trillion baht in fiscal 2022.
The Excise Department aims to collect oil excise tax revenue of 200 billion baht in fiscal 2022.
The target could fall to 180 billion baht following the government's launch of the diesel excise cut over a period of three months.