6 June 2024

Prime Minister Prayut Chan-o-cha has instructed relevant agencies to launch energy conservation campaigns as part of the national agenda, with the public sector taking the lead, to reduce the consumption of energy by 20% and to cut the use of fuel by 10%, as global oil prices rise as a result of the war in Ukraine, said Government Spokesman Thanakorn Wangboonkongchana on Tuesday.

He said that the prime minister has also instructed the ministries of Energy and Commerce to develop measures to help low-income earners and to try to maintain the prices of consumer products.

Diesel prices as of yesterday were capped at slightly below 30 baht/litre, while gasohol prices were between 30-38 baht/litre.

After the cabinet meeting yesterday (Tuesday), the prime minister told the media that the impacts are now being felt by the public and said that it is time for the public to use energy more economically.

Citing the use of private cars, he said he will not restrict their use, but he suggested that people should use them less. He also said the public should clean their air-conditioners to save power and switch off lights which are not necessary.

For diesel fuel alone, the prime minister said Thailand is spending about 600 million baht a day to cap the domestic price, which was recently well above 30 baht/litre at below the 30-baht level.

The National Energy Policy Council is scheduled to meet today to discuss energy conservation measures.

Yesterday, the cabinet also decided to cut excise tax on diesel and bunker oil used for generating electricity to zero until September 15th, to cut production costs, as the Electricity Generating Authority of Thailand (EGAT) is switching from natural gas, the price of which is also rising steadily, to diesel and bunker oil.

Finance Minister Arkhom Termpittayapaisith said the excise tax cut will not affect the Excise Department’s revenue, because the department has not earned any revenue from these two types of fuel in the past.

He added that there is a plan to import an additional 200 million litres of diesel and 35 million litres of bunker oil per month for electricity generation.