Thailand’s Oil Fuel Fund executive committee raised diesel price by 50 satang/litre to 32.94 baht/litre due to global oil price volatility, capping high-speed diesel subsidy at 1.40 baht/litre.
Thailand’s Oil Fuel Fund Raises Diesel Price
The executive committee of Thailand’s Oil Fuel Fund has approved a 50 satang/litre increase in the diesel price, bringing it to 32.94 baht/litre starting at 5am on Friday. This decision is a response to the global oil price volatility caused by conflicts in Ukraine and Gaza, and aims to limit the subsidy for high-speed diesel and B-20 high-speed diesel to 1.40 baht/litre.
Reasons Behind the Price Hike
According to Wisak Watanasap, director of the Oil Fuel Fund’s office, the continuous capping of the diesel subsidy at 1.40 baht/litre, amidst fluctuating global oil prices, has led to the price increase. The fund, which is currently in a deficit of 111.35 billion baht as of May 26, is facing a daily cost of 96.29 million baht for the diesel subsidy.
