Thailand’s Fuel Fund Executive Committee has decided to maintain the diesel price at 32 baht per litre, at least until Sunday, even though the cabinet agreed yesterday to cut the excise tax on diesel by 5 baht per litre.

Decisions are being made on a weekly basis as to whether to increase the price gradually, by 1 baht per litre, until the price reaches the ceiling of 35, after which the Fuel Fund Executive Committee will discuss the next moves while taking into consideration global oil prices and the prevailing status of the Oil Fuel Fund.

Energy Permanent Secretary Kulit Sombatsiri said today (Wednesday) that the committee is sticking to its original plan of capping diesel at 35 baht or less per litre for as long as possible.

The reduction in excise tax was not used to subsidise diesel price to below 32 baht per litre, but to cap the price at less than the 35 baht per litre ceiling, he explained.

The Oil Fuel Fund is currently in the red, to the tune of about 72 billion baht, including 38 billion baht spent on subsidising the price of diesel.