(CTN News) – Motorists were hit again today with the diesel price fuel rising by 1 baht to 33 baht per liter.
A diesel price increase, decided by the Fuel Fund Executive Committee, will remain in place for around a week until the committee meets again on Monday to decide whether to raise the diesel price again.
According to Wisak Watanasap, director of the Oil Fuel Fund Office, the diesel price hike is necessary due to rising global costs, the reduction in US strategic oil reserves, and the speculation that crude oil prices will remain high next week.
Crude oil surged to over US$120 a barrel yesterday, a two-month high, as market participants waited to see if the European Union would ban Russian oil imports.
Brent crude futures for July were up 59 cents to US$120.02 a barrel today, while Brent for August increased to US$116.30 a barrel.
According to Wisak, the Oil Fuel Fund is in the red by about 81.4 billion baht, while its cash reserves total about 9.7 billion baht.
Diesel’s one-baht a liter price increase will reduce oil subsidy withdrawals from the Oil Fuel Fund by about 60 million baht.