Thailand’s diesel price set to drop
Thailand’s diesel price was set to drop yesterday. The country’s domestic price of diesel was expected to drop by 0.5 baht per litre, according to the Oil Fuel Fund Office (Offo). This is the second reduction in diesel prices this month, with another 0.5 baht per litre drop scheduled for February 22. Officials determined last week that the price would drop from 34.94 baht per litre to 34.44 baht per litre on February 15, Bangkok Post reported.
According to Global Petrol Prices, Thailand’s diesel price was 34.47 on February 13.
The drop in diesel prices follows a drop in the diesel reference price in Singapore from US$135.53 per barrel on average in November 2021 to US$116.12 in January, and finally to US$106 per barrel last week.
Energy authorities have stopped allocating money from the fund to subsidize diesel prices, but the price remains low because the diesel excise tax of 5 baht has been waived until May 20.
In 2022, Offo spent 20 billion baht a month from the Oil Fuel Fund to subsidize the diesel price at 14 baht a litre due to the global energy price crisis, caused mainly by the Russia-Ukraine war. The authorities requested a 30 billion baht loan to support the dwindling fund, which was running a loss of nearly 130 billion baht. National oil and gas conglomerate PTT Plc allocated 3 billion baht to help the government support the fund.
Last year in April, when the price cap went from 30 to 32 baht per litre, angry truck drivers rallied in front of Government House in Bangkok.
As global oil prices have eased, the fund was 109 billion baht in the red as of February 12, 2023. However, the loss is shrinking because Offo collects a levy worth 3 billion baht a week from diesel users to support the fund. Offo’s policy and strategy department will decide on March 1 whether to increase the liquefied petroleum gas (LPG) price by one baht per kilogram, which will lead to an LPG price hike to 423 baht per 15 kilogram cylinder, up from 408 baht per cylinder. The market price of LPG is estimated at 480 baht per cylinder.
