The Fuel Fund Executive Committee has decided to increase the diesel price, which has been capped at 30 baht/litre since December last year, to 32 baht/litre, effective from May 1.

Energy Permanent Secretary Kulit Sombatsiri said today (Thursday) that the new ceiling price for diesel will be set at 35 baht/litre and the Fuel Fund Executive Committee will consider when the price will be further increased by one baht per litre up to the 35 baht/litre ceiling.

He said that the committee will monitor global oil prices on weekly basis and will adjust the domestic price in line.

Kulit said that the 35-baht/litre price does not reflect the current actual price, which should be over 40 baht/litre, as the government still subsidises half of the price increase through the Oil Fund, to ease the financial burden on consumers.

The government has decided to end the diesel subsidy on April 30th, after the Oil Fund has been almost depleted, despite a fresh injection of funds after global oil prices increased sharply due to the conflict in Ukraine.