The diesel price is predicted to go up by one baht, to 31.44 baht per liter, starting tomorrow, unless the Fuel Fund Executive Committee chooses to take on the increase, either completely or partially.
At its meeting on Tuesday, the cabinet chose not to extend the one baht per liter excise tax reduction for diesel, which is set to expire today. This means the diesel pump price will automatically increase by one baht per liter at midnight tonight.
Sources within the cabinet indicate that the Fuel Fund Executive Committee has not yet decided whether to fully or partially absorb the price increase, as both options will impact the Oil Fuel Fund, which is currently at a deficit of 103.6 billion baht.
The sources said that, if the committee opts to take on the increase, either in full or in part, to help consumers, the action would only be temporary.
The one-baht excise tax reduction on diesel, which was introduced on February 18, 2022, has cost the Finance Ministry around 178 billion baht in lost revenues.th, 2022, has cost the Finance Ministry about 178 billion baht in lost revenues.
The Energy Ministry has, however, been working to convince the Finance Ministry to extend the excise tax reduction or to allocate budget from the Central Fund to subsidize diesel prices.
