The Energy Policy Administration Committee (Epac) has agreed to lower the price of liquefied petroleum gas (LPG) in household cooking, capping it at 363 baht per 15kg cylinder.
Energy Minister Siri Jirapongphan said the new price is less than the current 395 baht per 15kg cylinder. The change is expected to take effect next Monday and should alleviate hardship of rising cost of living.
According to Mr Siri, the LPG account in the State Oil Fund currently stands at 551 million baht and it is enough to cover the subsidy programme for about two months if global prices remain stable.
The subsidy measure is expected to cost about 300 million baht per month, he added.
Mr Siri said the global price of LPG is likely to lower further as demand is expected to drop. This will push the cooking gas price down even more to 353 baht per 15-kg cylinder.
The global price of LPG currently stands at US $543 (about 17,00 baht) per tonne, down from $580, he said.
On rising diesel prices, Mr Siri said that Epac has also agreed to reduce hardship by drawing money from the State Oil Fund to cap the price at 30 baht per litre while waiting for the commercial development of B20 bio-diesel fuel.
Palm oil-blended B20 fuel, whose price is expected to be 3 baht lower than the regular diesel, is expected to be commercially available for large trucks and buses in late June or early July, he said.
However, he added that the government plans to use the State Oil Fund to continue subsidising the diesel price if the continues to fluctuate after introduction of B20.