The government of Thailand announced plans to cap the price of diesel at 28 baht per liter from December to March by limiting the amount of biodiesel in fuel.
On Wednesday, the Energy Policy Administration Committee (EPAC) approved limiting methyl ester (ME), also known as biodiesel, in high-speed diesel to 7% (B7 diesel), and suspending the production of 10% (B10) and 20% (B20).
In Bangkok and the surrounding area on Wednesday, the reference price for ME was 46.88 baht per liter and the pump price for B7 diesel was 28.84 baht.
Director-general of the Energy Policy and Planning Office Wattanapong Kurovat said retail diesel prices in Greater Bangkok will be limited to 28 baht per liter as a result of the move.
Truck operators and private sector members are in agreement with this, he said.
For the next year, truck operators have been campaigning for a 25-baht-per-liter cap on diesel prices.
Energy Minister Supattanapong Punmeechaow also proposed limiting oil traders’ profit margin to 1.4 baht per liter, down from 1.8-2.0 baht per liter.
In response to recent rallies and demands by the Land Transport Federation of Thailand to keep diesel prices low, and threats to hike freight rates by 10% as of Dec 1, the decision was made.
Prayut Chan-o-cha, the prime minister and defense minister, previously told the armed forces to prepare trucks to transport freight in case haulers went on strike.