23 May 2024

The diesel price is expected to increase by one baht, to 31.44 baht/litre, from tomorrow, unless the Fuel Fund Executive Committee decides to absorb the increase, fully or partially.

At its meeting on Tuesday, the cabinet decided not to extend the one baht/litre excise tax cut for diesel, which is due to expire today. This means that the pump price of diesel will automatically rise by one baht/litre at midnight tonight.

Informed cabinet sources say that the Fuel Fund Executive Committee has not yet decided whether to absorb the full or half the price increase, as both options will impact the Oil Fuel Fund, which is already running at 103.6 billion baht in the red.

The sources said that, if the committee decides to absorb the increase, either fully or partially, in order to ease the burden on consumers, the measure would only be temporary.

The one-baht excise tax cut on diesel, which was put in place on February 18th, 2022, has cost the Finance Ministry about 178 billion baht in lost revenues.

The Energy Ministry has, however, been trying to persuade the Finance Ministry to extend the excise tax cut or to provide budget from the Central Fund to subsidise diesel prices.