The executive committee of Thailand’s Oil Fuel Fund has agreed to increase the diesel price by 50 satang/litre, to 32.94 baht/litre, effective 5am on Friday.
Wisak Watanasap, director of Oil Fuel Fund’s office, said today that the increase reflects volatility in global oil prices, due to the wars in Ukraine and Gaza, and is to cap the subsidy for high-speed diesel and B-20 high-speed diesel at 1.40 baht/litre.
He explained that the continuous capping of the diesel subsidy at 1.40 baht/litre, in wake of global oil price fluctuations, has resulted in the rise.
On May 7, the Cabinet decided to cap the diesel price at 33 baht/litre, from April 20th to July 31st, to ease the burden on consumers.
The financial status of the Oil Fuel Fund, at May 26, is estimated to be 111.35 billion baht in deficit, including 63.66 billion baht for fuel oil and 47.69 billion baht for LPG.
The subsidy for diesel is costing the Oil Fuel Fund an estimated 96.29 million baht per day.
