The Ministry of Energy will try to freeze the pump price of diesel fuel at 31.94 baht/litre until the end of the year, even though the 5 baht/litre excise tax cut will expire on July 21^st, and is not likely to be extended, Energy Permanent Secretary Kulit Sombatsiri said Tuesday.

He said that the loss incurred by the Oil Fuel Fund to subsidise diesel fuel has reduced and there is still 70 billion baht left from the loan to improve the liquidity of the fund, which can be used to subsidise the diesel price for an extended period, provided that the global price remains at US$90 per barrel or does not fluctuate much.

He pointed out, however, that if diesel price is to be subsidised beyond the July 21^st deadline and if the excise tax cut is not extended, the Energy Ministry will have to seek approval from the Election Commission if the reserve fund is to be used to maintain the price, was the case with electricity charges.

Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow said the Energy Ministry would have to consult the Finance Ministry and both will have to monitor the diesel price on the world market closely, before there is a decision on extending the subsidy.

He added, however, that before the dissolution of parliament some months ago, it was agreed that the price of diesel should be in the range of 35 baht/litre.

The loss incurred by the Oil Fuel Fund from the price subsidy program, which peaked at about 140 billion baht, has now dropped to about 72 billion baht.