11 July 2024

The Fuel Fund Executive Board decided to increase the price of diesel fuel by another baht today (Monday), to 33.94 baht per litre, effective tomorrow, following a spike in global prices, due to worries of disruption in supplies from Russia and ease of lockdown in Shanghai. 

The board is to decide weekly whether to increase the price in line with global trends. Last week, it raised the price by about one baht, to 32.94 baht/litre. The ceiling has been set at 35 baht/litre.

Director of the Oil Fuel Fund Office Wisak Watanasap said that the increase is in line with global oil price fluctuations over the past week, which saw Brent crude rose $2.11, or 1.8%, to settle at $119.72 a barrel on Friday.

He attributed the global oil price rises to anticipated rising demand following the reopening of China after a long period of COVID-19 lockdown, sanctions on oil and gas from Russia and the US’s strategic oil reserves.

Wisak also said that global oil prices will remain high until next week.

The Oil Fuel Fund, which has been used as the key mechanism for keeping domestic oil prices unrealistically low, through subsidies, has been running a deficit of over 80 billion baht and a diminishing cash flow.