The cabinet yesterday approved a further cut in the excise tax on diesel by 5 baht per litre for two months or until July 20 to mitigate the impact of high energy prices.
In February, the government decided to cut the excise tax by 3 baht per litre, down from 5.99 baht, from Feb 18 to May 20.
Prime Minister Prayut Chan-o-cha said the tax cut would cost about 20 billion baht and leave the Oil Fuel Fund, which provides the subsidy, 70 billion baht in the red.
"It is essential to take care of the people and the manufacturing sector," said Gen Prayut, adding: "The government is doing its best to prevent the retail price of diesel from rising in line with global crude oil prices."