Thai Cabinet fuels up for savings: Gasohol 91 prices set to drop

The Thai Cabinet today gave initial approval for a 2.5 baht per litre reduction in the price of gasohol 91 for three months, likely to start from October 31, as stated by the Thailand Energy Minister.

Thailand Energy Minister Pirapan Salirathavibhaga confirmed that this price cut would be facilitated by a 2.5 baht per litre reduction in excise tax, a method similar to the one employed for lowering diesel pump prices. The Energy Ministry presented this proposal to the Cabinet today, on Tuesday, October 24, following instructions from the Prime Minister.

Further details will be presented to the Cabinet next Tuesday, and once approved, the reduction in the price of gasohol 91 will be implemented immediately, according to Pirapan.

As of Tuesday, October 24, gasohol 91 was priced at 37.98 baht per litre at PTT and Bangchak petrol stations in Greater Bangkok. The reduction in excise tax, which contributes to the price cut, is expected to decrease state revenue by approximately 1 billion baht.

Deputy Prime Minister Pirapan, who also heads the Energy Ministry, pledged to explore means of reducing pump prices for other types of petrol while also revising the overall oil price structure. He described this restructuring as the most significant in the last decade.

In related news, Thailand’s car production experienced an 8.45% decline in September, with manufacturing figures reaching 164,093 units, a substantial decrease from the same period the previous year. The Federation of Thai Industries (FTI) reported this contraction on Tuesday, attributing it to a decline in domestic car sales.

Domestic car sales for September saw a contraction of 16.27% compared to the previous year, following an 11.7% decline in August. Surapong Paisitpattanapong, the spokesperson for FTI’s automotive industry division, highlighted that this downturn is a consequence of tightened auto lending schemes by banks.

In comparison to the 12.27% contraction in August, the decline in the country’s car production in September was marginally less severe. Thailand serves as a prominent regional hub for vehicle production and export, home to major car manufacturers such as Toyota and Honda.

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