Thailand Ministry of Treasury Extends Diesel Tax Cut for Two More Months

(CTN News) – In response to the approaching deadline of July 20, the Ministry of Treasury has been requested to extend the diesel tax cut for another two months. Caretaker Prime Minister Gen Prayut Chan-o-cha made this decision during a recent cabinet meeting.

The extension proposal aims to cover the transitional period of government, allowing the new administration sufficient time to implement new measures addressing the issue.

The diesel tax reduction, which has been in effect for several months, has relieved the public amidst the financial strain caused by volatility in global oil prices.

However, the extension is expected to result in an additional loss of approximately 10 billion baht. Despite this, Energy Minister Supattanapong Punmeechaow has expressed confidence in the financial situation of the Oil Fuel Fund, stating that there are options available to maintain or reduce the price of diesel for the public.

Minister Supattanapong highlighted that if the tax reduction is not extended, the oil fund mechanism can be utilized to lower diesel prices.

The fund currently holds around 63.4 billion baht, which can be utilized to improve liquidity and stabilize fuel prices. This alternative measure provides reassurance that the government will continue to address the public’s concerns regarding diesel prices.

The deadline for the extension, originally set for May 20, was postponed to allow for a more comprehensive evaluation of the situation.

The government has previously reduced diesel tax on seven occasions to alleviate the financial burden caused by global oil price volatility and ongoing conflicts.

This extension reflects the government’s commitment to supporting the public during this transitional period and ensuring a smooth transition for the incoming administration.

Government Considers Alternative Measures to Address Diesel Prices

In conclusion, the Ministry of Treasury has responded to Caretaker Prime Minister Gen Prayut Chan-o-cha’s instruction by extending the diesel tax cut for another two months.

This decision acknowledges the need for continued support during the transitional period of government. Energy Minister Supattanapong Punmeechaow’s assurance of the Oil Fuel Fund’s stability and alternative measures to address diesel prices provides further confidence in the government’s commitment to the public’s welfare.