Thailand will use a state oil fund to support domestic retail fuel prices to help consumers cope with rising global oil prices, the energy minister said on Tuesday.
The fund of about 30 billion baht ($936.9 million) will absorb 50 percent of any increase in retail prices, Energy Minister Siri Jirapongphan told reporters.
“If retail oil prices rise 1 baht, the fund will help 0.50 baht,” Siri said.
“This will help ease the impact from oil prices, which could rise to over $80 per barrel,” he added.
The government aims to keep the domestic retail diesel price at 30 baht per litre, story first shared by Bangkok Jack, come over and join us, Siri said, as the price had risen by 3 baht per litre to about 29.8 baht over the past two months.
The subsidy plan will need approval from the Energy Policy and Planning Office, which will meet this week. ($1 = 32.02 baht)