Connect with us

Thailand Caps Diesel Price at 30 Baht Until May 2022

Avatar of CTN News

Published

on

Thailand Caps Diesel Price at 30 Baht Until May 2022

Since the beginning of this year, oil prices have risen 30%. Diesel prices in the U.S. have risen to their highest levels since 2014, and Germany is experiencing fuel shortages. Last week, Brent crude settled at $109 per barrel.

As oil prices rise globally the government of Thailand has said it will maintain the cap on diesel prices at 30 baht (US$0.90) a liter by applying for subsidy money from the Oil Fund until the end of May, when the fund’s 40 billion baht (US$1.1 billion) fund will run out.

Supattanapong Punmeechaow, deputy prime minister and minister of energy, said on Friday the Russian-Ukrainian conflict has caused energy prices to soar, affecting domestic oil and liquefied natural gas (LNG) prices.

According to him, global prices of oil and LNG were the highest in 14 years at US$180 (5,990 baht) per barrel and US$84.37 per million British thermal units (Btu).

According to the minister, the high prices are due to increasing demand as many countries recover from Covid-19 as well as the recent onset of cold weather in western countries.

Diesel Cap Subsidy Loan

Despite this, Mr. Supattanapong has assured that the government will maintain the diesel cap, adding that the 40-billion-baht loan for the Oil Fund will be able to support the subsidy scheme until May if global crude oil prices are no higher than US$115 a barrel.

Upon being asked what would happen when the loan is fully used up, he replied: “All we have to do now is to save energy while we wait for [additional loans].

“We have to depend on ourselves,” he said. “The government will try to keep diesel prices within reasonable limits. If everyone contributes to energy savings, the cap will last longer, and if prices fall, it will last even longer.”

In response to surging fuel prices, the National Energy Policy Committee (NEPC) lifted the borrowing limits for the Oil Fund on Wednesday.

Energy permanent secretary Kulit Sombatsiri said the NEPC decided to remove borrowing limits set at 40 billion baht.

It will also require legal amendments, he said. He intends to submit the measure to the cabinet next week. Under current law, the Oil Fund’s management cannot seek loans worth more than that amount.

According to Mr. Supattanapong, the Energy Ministry and Finance Ministry today will discuss ways to help benzene users through the state-welfare card scheme, which has about 13.5 million cardholders.

According to him, the measure will affect about 21 million motorcycle drivers registered with the Department of Land Transport.

To ensure that users of LPG and diesel can enjoy cheap fuel, petroleum users have been forced to contribute to the Oil Fund.

According to Mr. Supattanapong, the LPG price would also have to increase since it has been set at 318 baht per 15-kilogram gas cylinder for some time.

He said the new price of 15-kilogramme LPG cylinders will be 333 baht per cylinder, as of April.

According to him, the government offers a 45-baht discount through its social welfare card scheme to help people pay for cooking gas.

Continue Reading

CTN News App

CTN News App

Recent News

BUY FC 24 COINS

compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies