The domestic diesel price is set to be reduced by 0.50 baht a litre on Tuesday, thanks to a decline in global crude oil prices, says Energy Minister Auttapol Rerkpiboon.
The lower price comes after the Fuel Fund Executive Committee resolved to reduce motorists’ contribution to the state Oil Fuel Fund in a meeting chaired by Mr Auttapol on Monday.
The committee will also seek cooperation from oil retailers to trim gasoline prices by 0.30 baht a litre.
The move will lead to the diesel price falling to 30.94 baht a litre, down from 31.44 baht, while gasohol — a mix of gasoline and ethanol — will become less expensive, although the price of this fuel may not decrease by 0.30 baht a litre, as it would depend on how much ethanol is blended.
The drop in crude oil prices plays an important role in the reduction of the retail prices of oil as well as helping the government to implement its policy to maintain appropriate energy prices for businesses and households, said Mr Auttapol.
Dubai crude oil reference has continued to decline to US$61.32 a barrel due to various factors, including the easing of diplomatic pressure on countries that wish to purchase oil from Russia.
The International Energy Agency also forecasts a global oil oversupply, driven by ongoing production growth from OPEC+ and a weakening global economic outlook that is dampening energy demand.
These circumstances support the state’s “Quick Big Win” policy, which is pushing for swift, impactful and broadly beneficial projects. In the energy sector, lower oil prices would ease the cost of living.
“Energy is a fundamental necessity that affects our daily lives. The recent reduction in diesel prices continues the downward trend that began in early October,” said Mr Auttapol.
The financial status of the Oil Fuel Fund, which is used as a buffer against crude oil price fluctuations, is improving.
As of Oct 19, the fund accumulated a loss of 14.7 billion baht, comprising a 26.9-billion-baht gain in the oil account and a 41.6-billion-baht loss in the liquefied petroleum gas account.
The latest reduction in oil prices would cause the fund to see its revenue from gasoline decrease to 83.1 million baht a day, down from 92.7 million baht a day, while revenue from diesel remains unchanged at 61.7 million baht a day.