The Fuel Fund Executive Committee decided today (Monday) to increase the retail price of diesel fuel by 1 baht to 33 baht per litre from tomorrow. The new price will remain for at least a week, as the committee will meet again on June 6^th to decide whether the price should be further adjusted.

Director of the Oil Fuel Fund Office Wisak Watanasap said that it is necessary to increase the price of diesel because the global prices are rising, due to the easing of lockdown measures in China and the reduction in US strategic oil reserves, as well as speculation that the price of crude oil will remain high next week.

Crude climbed rose to over $120 a barrel today, hitting a two-month high, while markets wait to see if the European Union member states will agree to ban Russian oil imports.

The Brent crude futures contract for July was up 59 cents at US$120.02 a barrel today. The August Brent Contract, which is more active, rose to $116.30 a barrel.

Wisak disclosed that the Oil Fuel Fund is now running in the red, by an estimated 81.4 billion baht, while its cash reserves amount to about 9.7 billion baht.

The one-baht/litre price increase for diesel will reduce the outflow of oil subsidy from Oil Fuel Fund by about 60 million baht.

The Fuel Fund Executive Committee earlier decided to set the ceiling price of diesel at 35 baht per litre, with the price to be increased by one baht/litre on weekly basis, to reflect global oil prices.