The diesel price is poised to rise by one baht to 31.44 baht per liter starting tomorrow, unless the Fuel Fund Executive Committee opts to absorb the increase, either partially or entirely.
During its Tuesday meeting, the cabinet decided against extending the one baht per liter excise tax reduction for diesel, which is set to expire today. Consequently, the diesel pump price will automatically increase by one baht per liter at midnight.
Sources within the cabinet indicate that the Fuel Fund Executive Committee has yet to determine whether to fully or partially absorb the price hike, as both options would impact the Oil Fuel Fund, already operating with a deficit of 103.6 billion baht.
Should the committee choose to absorb the increase, either fully or partially, in a bid to alleviate consumer burdens, the measure would only be temporary.
The one-baht excise tax reduction on diesel, implemented since February 18th, 2022, has resulted in approximately 178 billion baht in lost revenues for the Finance Ministry.
Despite this, the Energy Ministry has been advocating for the Finance Ministry to extend the excise tax reduction or allocate funds from the Central Fund to subsidize diesel prices.
