The price of standard diesel will be maintained at 32 baht per litre after the excise tax reduction ends this week, the state oil fund announced on Tuesday
The diesel tax cut of 5 baht per litre ends on July 20.
The Oil Fuel Fund Office said it would help stabilise the retail price for a period of time in line with its liquidity.
This would help alleviate the impact of high energy prices on the public.
“The fuel fund office wants to take care of people, to prevent an impact on spending when the national economy is recovering. But it cannot be said clearly how long this care can continue. It depends on the global price of diesel,” director Wisak Watanasap said.
If the global diesel price exceeded US$110-125 per barrel, price intervention must be reviewed, he said.
When the new government takes office, the fuel fund office would propose continuing the diesel excise tax reduction of 5 baht per litre, because the diesel price is still at a critical level, Mr Wisak said.
“The diesel price is still above 30 baht per litre and the Oil Fuel Fund is still in the red,” he said.
Pornchai Jirakulpaisan, the fund's head of strategy and policy, said the Oil Fuel Fund was 49.83 billion baht in debt as of Sunday because of its past subsidies on diesel and liquefied petroleum gas.