Latest news with #OilFuelFund
Bangkok Post
5 days ago
- Business
- Bangkok Post
Authorities consider adjusting diesel ceiling price
Energy authorities are considering adjusting the ceiling price of diesel at the pump, which has remained unchanged for years despite changes in economic circumstances, says the Oil Fuel Fund Office (Offo). The government had regulated the price of diesel by setting a maximum rate of 30 baht a litre, but since Russia's invasion of Ukraine in 2022, when global crude oil prices skyrocketed, it has only been able to fix the price at 32-33 baht a litre, as opposed to the market rate of around 36 baht a litre, as additional subsides would incur a huge debt. During the 12-day Israel-Iran war last month, crude prices surged again and the government was able to cap the price at 31.94 baht a litre, which is the current price of diesel sold domestically. This led to a need to update the ceiling price to better suit the economic situation and the status of the Oil Fuel Fund, which is used to regulate the domestic diesel price. "The ceiling price should be revised in line with the fuel price crisis management plan to be implemented between 2025 and 2029," said Pornchai Jirakulpisan, head of Offo's policy and strategy department. He did not elaborate on the new ceiling price, saying only that the new price level would be announced once the drafting of the fuel price crisis management plan is completed. "We don't want to put too much financial burden on the fund," said Mr Pornchai. "We should have enough money to regulate the fuel price if an oil crisis erupts." During the Israel-Iran war, authorities decided to collect a lower contribution from users of diesel, gasoline and gasohol to support the fund to relieve the impact of the increase in global oil prices. Since the war subsided, gasoline and gasohol consumers have been paying contributions at regular rates, ranging from 1.9-9.6 baht a litre. Authorities still allow users of diesel, a key fuel for the transport and manufacturing sectors, to pay a contribution at a reduced rate of 0.9 baht a litre. The only financial burden for the fund is money to subsidise the liquefied petroleum gas (LPG) price at 2.03 baht per kilogramme to fix the domestic LPG price at 423 baht per 15-kilogramme cylinder, compared with the actual market price of 453 baht per cylinder. The ceiling retail price of LPG, which is used as cooking gas, may be also be changed in the same direction as the ceiling price of diesel, said Mr Pornchai.
Bangkok Post
5 days ago
- Business
- Bangkok Post
Authorities mull adjusting diesel ceiling retail price
Energy authorities are considering adjusting the ceiling retail price of diesel which has remained unchanged for decades and has not aligned with the changes in economic circumstances, says the Oil Fuel Fund Office (Offo). The government had regulated the price of diesel by setting a maximum rate of 30 baht a litre, but since Russia's invasion of Ukraine in 2022, when global crude oil prices skyrocketed, it has only been able to fix the price at 32-33 baht a litre, as opposed to the market rate of around 36 baht a litre, as additional subsides would incur a huge debt. During the 12-day Israel-Iran war last month, crude prices surged again and the government was able to cap the price at 31.94 baht a litre, which is the current price of diesel sold domestically. This led to a need to update the ceiling price to better suit the economic situation and the status of the Oil Fuel Fund, which is used to regulate the domestic diesel price. "The ceiling price should be revised in line with the fuel price crisis management plan to be implemented between 2025 and 2029," said Pornchai Jirakulpisan, head of Offo's policy and strategy department. He did not elaborate on the new ceiling price, saying only that the new price level would be announced once the drafting of the fuel price crisis management plan is completed. "We don't want to put too much financial burden on the fund," said Mr Pornchai. "We should have enough money to regulate the fuel price if an oil crisis erupts." During the Israel-Iran war, authorities decided to collect a lower contribution from users of diesel, gasoline and gasohol to support the fund to relieve the impact of the increase in global oil prices. Since the war subsided, gasoline and gasohol consumers have been paying contributions at regular rates, ranging from 1.9-9.6 baht a litre. Authorities still allow users of diesel, a key fuel for the transport and manufacturing sectors, to pay a contribution at a reduced rate of 0.9 baht a litre. The only financial burden for the fund is money to subsidise the liquefied petroleum gas (LPG) price at 2.03 baht per kilogramme to fix the domestic LPG price at 423 baht per 15-kilogramme cylinder, compared with the actual market price of 453 baht per cylinder. The ceiling retail price of LPG, which is used as cooking gas, may be also be changed in the same direction as the ceiling price of diesel, said Mr Pornchai.
