Diesel climbs to 30.49 baht, Thai govt ponders support measures

Diesel prices in Thailand have experienced a 50 satang per litre increase, prompting the prime minister to call for a meeting to discuss countermeasures following the retail price adjustment today.

Previously, the Ministry of Energy and the Ministry of Finance had jointly managed retail pricing through a tax reduction mechanism to cap diesel prices at 30 baht per litre, a decision enacted by the Cabinet on December 19, 2023, effective from January 1, until March 31, 2024.

In a recent development, diesel prices at the pump have edged up from the previous 29.99 baht per litre to 30.49 baht. At Government House, Prime Minister Srettha Thavasin remarked that the Cabinet meeting held today included discussions on whether to adjust the retail price of diesel. The Ministry of Energy reported that a meeting would be held later in the afternoon to determine measures to mitigate the impact.

When asked if the central budget would be used to support diesel prices, the 62 year old Thai prime minister suggested waiting for the outcome of the afternoon meeting, indicating that several measures were under consideration and would be communicated in due course.

The price adjustment comes at a time when Thailand’s energy sector is under scrutiny, with the government facing the challenge of balancing fiscal responsibility with the need to support consumers and businesses affected by fluctuating fuel prices. The decision to increase diesel prices, albeit slightly, is a testament to the complexities of managing energy costs in a fluctuating global market.

The government’s approach, involving inter-ministerial collaboration and the consideration of various support measures, reflects the multifaceted nature of energy policy. It is not just about adjusting prices but also about ensuring economic stability and protecting the interests of the Thai people.

Ripple effect

As diesel is a crucial fuel for transportation and industry, any price changes have a ripple effect across the economy, influencing the cost of goods and services. The government’s cautious approach, therefore, is not only prudent but necessary to avoid exacerbating inflationary pressures, reported KhaoSod.

The Bangkok-born prime minister’s statement indicates a willingness to consider a range of options to ease the burden on consumers. This could include using the central budget to subsidise diesel prices or implementing other financial mechanisms to soften the blow of increased energy costs.

The outcome of the afternoon meeting is eagerly anticipated by businesses and consumers alike, who are keen to understand the government’s strategy in the face of rising diesel prices.