Thailand’s Fuel Fund Executive Committee has decided to cut the retail price of diesel fuel by 50 satang/litre, the first time in seven months, effective February 15th.
Wisak Watanasap, director of the Oil Fuel Fund Office, said today (Thursday) that the reduction will bring the pump price of diesel to 34.50 baht/litre, which is the first time since the price began steadily increasing to 35 baht/litre since June 14th last year.
The government has, however, been subsidising the diesel price, to keep it at 35 baht/litre, by cutting the excise tax by five baht/litre. The subsidy will continue until May 20th.
Wisak said that the price of diesel may reduce further, if global oil prices continue to fall.
The Oil Fuel Fund, which is the main tool used by the Thai government to keep the prices of diesel and cooking gas at realistic levels is, by January 29th, in the red by 113.4 billion baht.
