11 July 2024

Energy Minister Siri Chirapongphan has hinted that retail price of diesel may be increased above 30 baht/litre if global crude price rises to between 90-100 US dollars/barrel and the 6,000 million baht set aside from Oil Fund to freeze diesel price at 30 baht/litre is not sufficient and additional fund is needed.

He said that currently retail diesel price was subsidized at 60 satang/litre from a maximum amount of one baht/litre in order to maintain the price at 30 baht/litre until the end of this year.

According to oil experts, he said that there was a likelihood that global crude price, estimated at 70.3 US dollars/barrel for Dubai crude could increase to between 80-100 US dollars/barrel due to concern over US sanctions against Iran which are due to take effect on November 4.

He said crude oil prices would fluctuate substantially during a week before and after November 4.

Bank of Thailand assistant governor for monetary policy Mr Chaturong Chantharung said the central bank was closely monitoring oil price fluctuations with concern that Thailand’s economic recovery could be affected if crude price increases to 80 US dollars/barrel.

However, he noted that the trade war between China and the United States still remains the No 1 risk as shale oil will help prevent crude price from shooting up too high.