Retail prices of fuel remain unchanged in Thailand despite a decision to increase the fuel excise tax by 15%, according to Energy Minister Pirapan Salirathavibhaga.
The agencies responsible have adjusted prices by reducing motorists’ contributions to the state Oil Fuel Fund, he said.
Excise tax and levies paid to support the oil fund are among the key components of domestic oil prices.
Changes in excise tax rates and contributions to the fund are made occasionally to control prices.
Effective from Wednesday, the excise tax rate on gasohol 95 will rise to 6.70 baht from from 5.85 baht a litre), gasohol E20 to 6 baht from 5.20 baht, and diesel to 6.92 baht from 5.99 baht.
To offset the impact of the tax increase, the board of Oil Fuel Fund Office resolved to reduce fuel users’ contributions to the Oil Fuel Fund by between 11% and 15%.
Contributions for gasohol 95 fall by 15% to 3.70 baht a litre; gasohol E20 by 11% to 2.40 baht and diesel by 12% to 3 baht a litre.
“The move is aimed at preventing retail fuel prices from increasing in order to help people control their living costs at a time the economy has yet to fully recover,” said Mr Pirapan.
The lower contributions will be applied at least until Sept 30, which is the end of fiscal 2025, said Pornchai Jirakulpaisal, director for policy and strategy at the Office of the Oil Fuel Fund.
If global oil prices increase significantly, the Office will ask the Excise Department to reduce the tax rate, he said.
The lower contributions will reduce the fund’s revenue by 49.5 million baht a day from the current average of 394 million baht.
As of May 5, the fund had run up a loss of 47.8 billion baht from subsidising diesel and cooking gas prices.