PTT injects B3bn into Oil Fuel Fund

PTT injects B3bn into Oil Fuel Fund

Cars fuel for petrol at a PTT station. (Bangkok Post file photo)
Cars fuel for petrol at a PTT station. (Bangkok Post file photo)

National oil and gas conglomerate PTT Plc has resolved to allocate 3 billion baht to support the state Oil Fuel Fund, which is shouldering a heavy financial burden to put a cap on diesel and liquefied petroleum gas (LPG) prices.

The PTT board on Tuesday decided to grant the money, as a debate on the government's plan to collect a windfall tax from oil refineries to inject more money into the fund remains unsettled.

The tax will be imposed on part of the oil refinery margin.

Auttapol Rerkpiboon, president and chief executive of PTT, said the decision is aimed at supporting the government’s efforts to help keep down the cost of living.

The company will provide 1 billion baht each month from July to September.

The Oil Fuel Fund Office will discuss later whether the money will be spent to control retail prices of diesel or pay debts incurred by the fund, which has already run up losses of 105 billion baht.

Earlier energy authorities asked PTT to help the state-run Electricity Generating Authority of Thailand (Egat) relieve its 60-billion-baht financial burden incurred by Egat's measures to alleviate rising living costs.

PTT, the sole gas seller in the country, decided to postpone Egat's gas purchase payment worth 13 billion baht which was due in May for another four months.

Egat usually spends 6-7 billion baht each month buying gas, amounting to 700 metric million cubic feet per day, from PTT. But when global oil prices soared since late last year, Egat has to pay 12 billion to 13 billion baht each month.

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