Thailand’s ‘fuelish’ plan: Expanding subsidy scheme to drive down costs for motorcycle taxi drivers

Photo by nist6dh taken from Flickr.

The Government of Thailand is envisaging the introduction of a further stage in the fuel cost subsidy scheme for motorcycle taxi drivers. This move is part of a broader strategy to reduce operational expenses in public transportation.

Prasert Sinsukprasert, the permanent secretary for energy, stated yesterday that a proposal for the new instalment of the energy cost subsidy initiative has been prepared by the Department of Energy Business. It is currently awaiting approval from the Ministry of Energy.

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The projected budget for this scheme is 600 million baht. Approval for this fund does not necessitate a cabinet agreement; it can be sanctioned by Prime Minister Srettha Thavisin and Energy Minister Pirapan Salirathavibhaga, according to Prasert.

Prasert assured that the fund will not require Cabinet approval.

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The Energy Minister also indicated that additional specifics about the project will be disclosed once the ministry completes its final preparations.

In its initial phase, the project provided a 50% co-payment for fuel costs to 106,655 motorcycle-taxi drivers who had valid licenses from the Department of Land Transport as of March 22, last year. The subsidy programme, which ran from May through July, offered a daily limit of 50 baht per person and a monthly cap of 250 baht per individual.

This initiative, which amounted to a fiscal commitment of 79.99 million baht, also included an income tax exemption for the drivers.

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One issue encountered during the first phase was the extended timeframe required for renewing a driving license whilst receiving the subsidy. However, sources have suggested that these issues are likely to have been resolved in preparation for the new grant.

In related news, Thai taxi drivers have a reputation that makes most foreigners hesitant to take them. However, honesty prevails when a motorcycle taxi driver in Nonthaburi returns 100,000 Thai baht to its owner showcasing a silver lining amongst reports of cheating, scheming, and robbing.

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Mitch Connor

Mitch is a Bangkok resident, having relocated from Southern California, via Florida in 2022. He studied journalism before dropping out of college to teach English in South America. After returning to the US, he spent 4 years working for various online publishers before moving to Thailand.

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