Diesel price increase hits motorists in the pocket
Motorists were hit in the pocket once more as the price of diesel fuel increased today by 1 baht to 33 baht a litre.
The latest price hike, decided by the Fuel Fund Executive Committee, will remain in place for around a week until the committee meet again on Monday to decide whether the price should be further increased.
Director of the Oil Fuel Fund Office, Wisak Watanasap, said the price hike is necessary because of rising global costs, the reduction in US strategic oil reserves, and speculation that the price of crude oil will remain high next week.
Crude oil increased to over US$120 a barrel yesterday, a two-month high, as markets wait to see if the European Union member states will agree to ban Russian oil imports.
The Brent crude futures contract for July was up 59 cents at US$120.02 a barrel today, while the August Brent Contract rose to US$116.30 a barrel.
Wisak revealed that the Oil Fuel Fund is now in the red, by an estimated 81.4 billion baht, while its cash reserves amount to about 9.7 billion baht.
The one-baht a litre price increase for diesel will reduce the outflow of oil subsidy from Oil Fuel Fund by about 60 million baht.
