Thailand seeks ways to navigate worsening global crisis

Thailand seeks ways to navigate worsening global crisis

A special committee and sub-committee have been set up to help steer government efforts in mitigating the impacts of worsening global economic conditions on Thailand.

Ordered by Prime Minister Prayut Chan-o-cha on Monday, the newly appointed ad hoc committee has been formed and will be headed by the prime minister himself.

The committee comprises economic ministers, permanent secretaries of the economic ministries, and chiefs of the National Security Council (NSC), National Economics and Social Development Council, the Bank of Thailand, and the Budget Bureau.

Also, a sub-committee has been formed as an advisory unit. It is led by the permanent secretary for finance and consists of representatives from all economic agencies.

The formation of the committee and sub-committee was proposed and approved at a meeting of the NSC held on July 4 and chaired by Gen Prayut, said Gen Supoj Malaniyom, secretary-general of the NSC, yesterday.

It was agreed at the meeting that Thailand has been heavily impacted by pressures linked to current conflicts among global superpowers, he said.

The economic impact of the conflicts, exacerbated by a surge in energy prices, is estimated to last between six months to a year. Even if the crisis subsides early, a concern remains about worsening food and fuel shortages, said Gen Supoj.

Wisak: No change in diesel price

The government faces an enormous challenge despite implementing various measures to cushion the impact of such conflicts on the economy, he said.

The newly appointed committee is tasked with directing and integrating efforts from related parties to resolve the economic problems.

Meanwhile, the price of diesel will stay at 34.94 baht per litre for the fifth consecutive week though global oil prices have decreased due to growing concerns over a global economic recession, says the Oil Fuel Fund Office (Offo).

The Offo board will meet again next Monday to determine a new price under the state subsidy programme.

The market price of diesel, including taxes, currently stands at 38.34 baht per litre. The diesel price subsidy has dropped to 3.46 baht a litre, down from 3.82 baht a litre last week, said Wisak Watanasap, the Offo director. Last month, the diesel price subsidy went up as high as 9.57 baht per litre, he said.

The government earlier planned to decrease its subsidy by gradually having domestic diesel prices increase to 38 baht per litre in order to lessen the burden on the Oil Fuel Fund, which has been mainly used to subsidise diesel and liquefied petroleum gas (LPG) prices.

Part of the fund has also been channelled to subsidise the prices of gasohol E20 and E85, a mix of petrol and ethanol with proportions of 20% and 85% respectively.

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