thailand raises diesel

Thailand Raises Diesel Price by Another 3.50 Baht per Liter

ByJustpaste.in

BANGKOK — Diesel prices will rise another 3.50 baht per litre to 44.24 baht at service stations across Thailand on Thursday morning, marking a 48 percent increase from just one month ago as the government continues to scale back fuel subsidies.

Thai Government to Promote B20 Biodiesel as Cheaper Alternative

PTT and Bangchak subsequently announced that prices for all grades of petrol would be increased by 1.20 baht per litre, also effective from 5am Thursday. Other fuel retailers were expected to follow their lead.

Subsidy Reduction

The diesel increase was announced late Wednesday after the Oil Fuel Fund committee reduced the subsidy for the fuel from 22.89 baht to 17.78 baht per litre. Diesel now costs 14.30 baht per litre more than it did on February 28 — the day Israel and the United States began bombing Iran, setting off a regional conflict that has caused major disruptions to energy supplies worldwide.

The pump price of B20 biodiesel was also increased by 3.50 baht, to 39.24 baht per litre, following a subsidy cut to 20.12 baht.

False Reports Dismissed

Reports circulating online earlier in the day had suggested increases of 3.00 baht per litre or more for all fuel types, but the Ministry of Energy dismissed these as fake news, clarifying the specific adjustments shortly before they took effect.

Fund Deficit

The Oil Fuel Fund, meanwhile, is preparing to seek bank loans to stabilize its finances, having run up a deficit of 42 billion baht from subsidizing fuel prices. The fund is reportedly seeking to have the Ministry of Finance guarantee borrowing of up to 150 billion baht to maintain its capacity to manage future price fluctuations.

Thai Government Confirms Sufficient Fuel Supplies During Songkran Holiday

The latest price hike continues a trend of sharp increases as the government gradually unwinds subsidy programs that had shielded consumers from global oil market volatility following the outbreak of war in the Middle East. For motorists and transport operators, the cumulative effect of repeated increases has added significant pressure to household and business budgets, with diesel now selling at levels not seen in recent memory.

-Thailand News (TN)

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