Diesel price capped at B32 for another week

Diesel price capped at B32 for another week

A motorist waits to refuel at a pump in Bangkok. (Photo: Pornprom Satrabhaya)
A motorist waits to refuel at a pump in Bangkok. (Photo: Pornprom Satrabhaya)

The Oil Fuel Fund board on Monday decided to continue capping the retail price of standard diesel at 32 baht per litre for another week.

Board director Wisak Watanasap said it would help protect consumers. The global diesel price was not too high, at $US138 per barrel, and the Oil Fuel Fund Office could still manage its liquidity, he said.

High global prices earlier prompted the board to raise its diesel price cap from 30 baht to 32 baht per litre on May 1. The board intends to review the diesel price and its price cap on a weekly basis.

The government reduced the excise tax on diesel by five baht per litre from May 21 to July 20 but the local pump price did not  fall because the government wanted to use the money saved to enable the oil fund to prolong its diesel subsidy and cap the up price at 32 baht for as long as possible.

The fuel fund's diesel subsidy dropped to 5.37 baht per litre from 9.55 baht per litre a week ago. The office plans to raise a 20 billion baht loan next month. State-run Government Savings Bank and Krungthai Bank are the planned lenders. The oil fund has 14 billion baht in cash remaining.

Diesel retailed at 31.94 baht per litre in Greater Bankok on Monday, while the realistic price was 38 baht per litre, Mr Wisak said.

The oil fund was 76.29 billion baht in the red, up from 66.86 billion baht last week, resulting from a 41.42-billion-baht loss from oil subsidies and 34.87 billion baht from its cooking gas subsidy, Mr Wisak said.

He said global oil prices normally declined after the northern winter, but they were still on the rise because of the war between Russia and Ukraine.

There is no subsidy on premium diesel.

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