Petrol prices to drop by 2.50 baht as new year gift, says Thailand’s Energy Minister

The Deputy Prime Minister and Minister of Energy announced plans to reduce petrol prices by 2.50 baht per litre as a new year’s gift to the Thai people. The minister, Peeraphan Saleerathaviphak, also revealed the establishment of an official committee to investigate fuel pricing.

Peeraphan revealed that the Ministry of Energy is considering ways to reduce petrol prices to help the public with cost of living expenses, comparing this with previous reductions in diesel prices. He highlighted that the idea is to offer a new year’s gift to the people of Thailand.

In a recent Cabinet meeting, the Ministry of Energy reported two initial options for consideration.

The first option consisted of supporting motorbike taxi drivers, similar to previous efforts, for 95 million baht per month. The second option involved extending support from motorbike taxi drivers to low-income groups, which would cost approximately 4 million baht per month, Peeraphan revealed.

“I did not agree with the two measures proposed by the Ministry of Energy this morning because the government’s policy aims to reduce fuel prices overall, not to offer group-specific support.

“Therefore, I asked the officials to go back and provide more details, including a third option to reduce petrol prices overall, similar to diesel. This will be proposed to the Cabinet in the future.”

Petrol Price Cut Plan

The minister went on to mention that the Ministry of Energy had reported on this matter in the Cabinet meeting. He stated that he did not agree with the two options as they did not align with the previously announced policy of reducing petrol prices to the lowest possible.

As for how much the government will subsidise these costs, the government will make a decision later. However, for now, they have been asked to propose a plan.

“The goal is to reduce the price of petrol to not less than diesel, but we have to consult with the Ministry of Finance again. For example, reducing it by about 2.50 baht per litre, etc. But the exact number will have to be discussed first to see how much can be done, including the method of operation, whether it will use the mechanism of reducing excise tax, or use the mechanism of the oil fund.

“The relevant units will study the details again. The main target is to work according to the principles and policies of the government. As for the method, let the relevant people see it again. And it will be completed within two weeks.”

Peeraphan further explained that there are currently many problems with the structure of petrol, including various regulations and laws, and they need to be adjusted. As for the issue of marketing costs, a committee has recently been established to study the structure of oil market costs in detail reported KhaoSod.

“The government is officially setting up a committee to investigate marketing costs because there is no benefit in discussing it. In the past, they said it was a trade secret. Therefore, a committee has been set up to seriously study this.

“We ask the relevant agencies to answer directly. And take our information officially. We gave them a chance to explain and understand and bring the numbers, but they didn’t come.

“If they don’t come, we can’t help. And this committee will have the first meeting on October 18 and will conclude within 60 to 90 days.”

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