A draft law to empower energy authorities to better regulate domestic oil and cooking gas prices is progressing towards parliament for approval, which could be a key energy policy under the nascent Paetongtarn Shinawatra regime.
Energy Minister Pirapan Salirathavibhaga stressed on Wednesday the bill should be considered by legislators by the end of this year.
Mr Pirapan maintained this policy after he was reappointed energy minister. His ministerial role ended following the Constitutional Court's ruling to dismiss Srettha Thavisin as prime minister over an ethics violation.
"This law will ensure domestic oil prices reflect real costs without depending on Singapore's Platts reference prices," said Mr Pirapan.
Under the bill, a new commission will be set up to determine appropriate tax rates that will be imposed on oil. This duty is currently carried out by the Finance Ministry, but once the new law is in place, financial officials will be solely responsible for collecting the tax.
Letting the energy authorities decide on the tax rates will not violate laws under the Finance Ministry, Mr Pirapan said earlier. The authorities would base their tax calculations on economic conditions.
The new law will also lead to the Oil Fuel Fund Office being dissolved, paving the way for the new commission to manage the fund.
Officials use the fund to support diesel and liquefied petroleum gas (LPG) subsidy programmes.
LPG is used as cooking gas by households.
Under the bill, the commission will meet to discuss oil and cooking gas prices and will make price adjustments on a monthly basis. This will give businesses and households enough time to better plan their fuel usage.
The state policy to keep retail diesel prices below 33 baht per litre is scheduled to expire on Oct 31 while the subsidy that fixes LPG prices at 423 baht per 15-kilogramme cylinder is set to end on Sept 30.
Mr Pirapan on Wednesday said their subsidy programmes are likely to be extended.
He did not disclose the extension period, only saying diesel, LPG and electricity prices must be controlled during the economic slowdown.