Energy authorities are planning more subsidies for gasohol prices by using money from the state Oil Fuel Fund after the ongoing subsidy programme ends on Jan 31.
The government has since November last year reduced the prices of gasoline and gasohol, a mix of gasoline and ethanol, by between 0.8 and 2.5 baht a litre, depending on oil types, to ease the burden on motorists.
The reduction took effect after authorities agreed to cut the excise tax as well as use money from the Oil Fuel Fund to help regulate oil prices.
The excise tax reduction alone is expected to cost the government around 1 billion baht.
As the end of the subsidy programme draws near, the Energy Ministry needs to think about how to keep gasohol prices at certain levels, and the Oil Fuel Fund will be a key source for subsidies, said Prasert Sinsukprasert, permanent energy secretary.
Mr Prasert said the new price subsidy programme is slated to take effect on Feb 1, but he did not reveal how long it will last.
The retail prices of gasohol 91 and 95 were 35 and 36.85 baht a litre yesterday, respectively.
Gasohol 91 and 95 are blended with 10% ethanol. The numbers 91 and 95 indicate their octane ratings.
Last year, the cabinet resolved to reduce the price of gasohol 91 and gasohol 95 by one baht a litre through an excise tax reduction and asked the Energy Ministry to cut the price of gasohol 91 by another 1.5 baht a litre via a price subsidy programme under the Oil Fuel Fund.
Other types of gasoline and gasohol receive different rates of reduction.
Gasohol E20, which is blended with 20% ethanol, and gasohol E85, which is composed of 85% ethanol, had their prices slashed by 0.8 baht a litre.
The price of unleaded gasoline 95 is reduced by one baht a litre.
In another development, PTT Plc, the parent of major oil retailer PTT Oil and Retail Business Plc, appointed Kongkrapan Intarajang to succeed PTT chief executive and president Auttapol Rerkpiboon, who is slated to retire in early May.
Mr Kongkrapan, the president and chief executive of PTT Global Chemical, a petrochemical arm of PTT, assumes the new post on May 13.