The Oil Fuel Fund Management Committee has resolved to reduce the subsidy on diesel by 2.61 baht/litre, effective today.
The move will push the pump price up by 2.80 baht per litre, sending Diesel B7 above the 50-baht mark.
According to the committee’s resolution of April 4, the subsidy on Diesel B7 will be cut from 20.71 baht/litre to 18.10 baht. Similarly, the subsidy on Diesel B20 will drop from 22.22 baht/litre to 19.61 baht.
The adjustment results in Diesel B7 increasing from 47.74 baht/litre to 50.54 baht/litre, while Diesel B20 has climbed from 42.75 baht/litre to 45.54 baht.
The committee stated that the decision was driven by persistent volatility in global oil markets, which remain at crisis levels, and that, by allowing retail prices to reflect actual costs more closely, the committee aims at ensuring the long-term sustainability of the Oil Fuel Fund.
The move is expected to significantly ease the financial strain on the fund, the daily expenditure of which is projected to drop from 1.709 billion baht per day to 1.497 billion baht.
“This move marks a shift towards fiscal balancing as the government grapples with high energy import costs and the need to maintain the fund’s liquidity,” according to the committee.
