Retail fuel prices are being reduced by 50 satang per litre from 5am on Saturday as part of a series of government measures to ease the cost of living.
The Fuel Fund executive committee on Friday approved a reduction of the oil fund levy on diesel by 50 satang per litre, and sought cooperation from oil traders nationwide to pass the savings on to drivers, according to Energy Minister Auttapol Rerkpiboon.
As a result, the retail price of diesel at petrol stations in Greater Bangkok is expected to drop from 31.94 baht to 31.44 baht per litre. Prices of all types of petrol and gasohol are expected to be cut by the same amount.
Mr Auttapol said that although the levy collection was reduced, the Oil Fuel Fund’s financial position has shown steady improvement thanks to falling global oil prices, which have eased the pressure on diesel contributions.
As of last week, the fund posted a deficit of 17.8 billion baht, comprising a positive oil account of 24.4 billion and a negative liquefied petroleum gas (LPG) account of 42.3 billion baht.
Prices of LPG, or cooking gas, have been subsidised for years, sometimes by a substantial amount below the market price. However, the current price of 423 baht per 15-kilogramme cylinder is higher than the prevailing market price of 385 baht, so some money has gone back into the fund to reduce its deficit.
Energy officials are expected to review LPG prices and settle on a new rate that is closer to the market price in the near future.
The reduction in the contribution rate for diesel is expected to reduce the fund’s diesel revenue to roughly 31 million baht per day, from 61 million previously. Gasoline revenue is expected to remain steady at around 93.8 million baht per day.