Bangkok: , The NBTC agreed to adjust the oil fund rate for the diesel group in April 2024 to better reflect world market prices. Not adhering to the framework for maintaining the retail price of 30 satang/liter, hoping that the Cabinet will agree to reduce the oil tax to keep it fixed or not after the Fund’s budget is negative 100 billion baht. Confirming that if the price increases, it will be in steps of 1-2 baht/liter to minimize the impact on the people.
Mr. Wisak Wattanasap, Director of the Fuel Fund Office, revealed that on March 27, 2024, a meeting of the Fuel Fund Executive Committee (FPF) discussed the retail diesel price situation in countries where the Fuel Fund announced compensation rates. which the meeting The FPC agreed to adjust the oil fund rate for diesel, not adhering to the domestic retail price of oil not exceeding 30 baht/liter, effective from April 2024 by adjusting the oil fund fund rate. The NBTC will consider various information. according to the appropriateness of the time period I
n order not to affect the living expenses of the people and the management of oil traders too much.
‘During the transition period that ends with the price fixing of 30 baht/liter between 31 March – 1 April 2024, the Fund will not make any adjustments. The price will remain at 30 baht/liter due to the increase in world diesel prices. And has the responsibility of taking care of the price of cooking gas (LPG). The Fund subsidizes diesel at 4-5 baht per liter, causing the Fund to be in the negative by almost a hundred billion baht. The money borrowed in excess of 100 billion baht according to the framework of the Ministry of Finance has already been withdrawn and used to enhance liquidity. Therefore, it is necessary to reduce diesel subsidies,’ Mr. Wisak said.
In this regard, the Ministry of Energy has reduced the cost burden for the people. Especially the cost of diesel fuel which is the cost of goods and services. The price of diesel has been fixed at 30 baht from September 2023 onwards, and on December 19,
2023, there was a resolution approving measures to reduce the burden of energy costs on the people. By holding the price of diesel fuel to no more than 30 baht per liter from 1 January 2024 to 31 March 2024, the Ministry of Energy and the Ministry of Finance jointly manage the retail price. Using the mechanisms of excise tax and fuel funds. As a result, the Oil Fund is currently in debt of close to 100,000 baht. It is estimated that the net oil fund position as of March 24, 2024 is negative 98,220 million baht, divided into oil account of negative 51,136 million baht and LPG gas of negative 47,084 million baht, while the diesel price situation in The world market remains at a high level. Singapore diesel 104.03 USD/barrel (Average from 1 – 20 March 2024)
Mr. Weerapat Kiatfuengfu A spokesman for the Ministry of Energy said that in order not to let the fund Too much debt and to maintain liquidity and confidence of the fund. The Ministry of Energy will bring the matter to discuss with the Cabinet to find ways t
o help. people along with reducing the debt burden of the Fund. But if there is no budget from other parts to help, such as the central budget or the reduction of excise tax rates Initially, it is expected that the fund The oil price compensation rate must be reduced by 1-2 baht per liter, which will result in an increase in the retail price of diesel fuel. But in order not to be too much of a burden on the people. Therefore, there will be a stepwise reduction in compensation for the price of diesel fuel.
‘In the past, the Ministry of Energy Understand the suffering of the people Currently, diesel compensation is 4.17 baht per liter. The Fund must pay approximately 8,700 million baht per month. Therefore, we ask the public to understand the situation at this time. If there is no budget to help, the Fund will have to reduce the compensation rate by 1-2 baht per liter, which will result in an increase in the retail price of diesel fuel. But in order for the people to be affected as little as possible. There wi
ll be a stepwise reduction in the diesel price compensation rate,’ Mr. Weerapat said.
Source: Thai News Agency