The Thai cabinet has decided to subsidise the diesel price until January 20th, which means a loss of excise tax revenue for the state of another 20 billion baht.
After the cabinet meeting today (Tuesday), Prime Minister Prayut Chan-o-cha told the media that the cabinet decided to maintain the diesel price by prolonging the 5-baht/litre excise tax cut on diesel.
He admitted that the continuation of subsidies on diesel fuel will mean more spending and a need to borrow more. He said that he understands this will place a greater burden on the next government adding, however, that the subsidies are necessary, as he assured that the government will try its best to manage its debt.
Finance Minister Arkhom Termpittayapaisith, meanwhile, said that the state will lose about 20 billion baht on diesel subsidies for the additional two months and that, although global diesel prices have dropped, the actual domestic price has not.
He said that the Finance Ministry will have to guarantee new loans for the Oil Fuel Fund, so it will be able to subsidise oil and gas prices adding, however, that he can’t tell for sure when the subsidies will end and the ministry is closely monitoring the oil price situation.
The cabinet also approved 81 billion baht for a rice price guarantee scheme for the 2022-2023 crops. About 66 billion baht will come from the Bank of Agriculture and Agricultural Cooperatives and the rest from the Rice Department’s budget.
