Thailand’s diesel price expected to spike starting May 1

Even though Thailand’s energy minister vowed last month to keep the 30 baht per litre cap on diesel prices until the end of May, officials now expect the diesel price to start pushing 35-36 baht per litre by the start of May. The director of the Energy Policy and Planning Office says all agencies have been instructed to plan how they can ease the impact of the price spike.

Diesel fuel is mostly used by trucks and buses, and the price surge is expected to hurt consumers across the board by raising prices on various products – anything that is delivered by a truck will likely cost more.

The price increase will also make it harder for the government to stop operators of cargo transport from adjusting their transport charges.

What’s more, the EPPO director said the initial price rise of 5-6 baht more per litre is only half of the actual cost increase. He said the government doesn’t want to immediately raise the price by 10-12 baht.

Thailand has yet to see how workers in various industries will react to the skyrocketing prices. In January, angry truck drivers once threatened to camp out in front of if Thailand’s energy ministry if the minister didn’t lower diesel prices in 7 days. The price at the time was 30 baht per litre, but the Land Transport Federation of Thailand wanted it to be 25. The LTFT’s chairman said if the minister didn’t lower the diesel price, the LTFT might raise transport fees by 15-20%. Imagine how people will react to 35 baht per litre, or 40+?

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The EPPO director said diesel prices are expected to rise in other ASEAN countries as well, as some government subsidies are either finishing or inadequate to quell the fast-rising prices of diesel and other crude oil-based products.

SOURCE: Thai PBS World