11 July 2024

Thailand’s Fuel Fund Executive Committee decided today (Monday) to increase the diesel price by another one baht per litre, to 34.94 baht, effective tomorrow, the fourth rise since May 1st and almost reaching the ceiling price set at 35 baht/litre.

Director of the Oil Fuel Fund Office (OFFO) Wisak Watanasap explained that global oil prices increased to US$172.77 per barrel on June 10th, up from US$158.29 per barrel on June 2nd, as a result of increasing oil demand in the United States, driven by labour market improvements in May and the relaxation of lockdowns in China, which has spurred the resumption of business activity.

Wisak said that the global oil price increase has prevailed, despite the fact that OPEC has increased oil production for July and August by 648,000 barrels a day.

He said, however, that the government has been trying, through the use of the Oil Fuel Fund and through excise tax cuts, to slow the price increases of diesel, to ease the impacts on consumers.

For every one baht increase in the diesel price at the pump, the government is subsidising it by another one baht, as agreed by the cabinet on March 22nd, said Wisak.

As of yesterday, the Oil Fuel Fund is 91.089 billion baht in the red.