Huge worth fall not anticipated as oil gas fund wants to boost cash
Motorists refuel their bikes on the PTT petrol station.
Following the latest drop in diesel reference costs in Singapore, the Oil Gas Fund Workplace (Ofo) is contemplating imposing a brand new cap on the value of home diesel via its subsidy scheme subsequent week.
Nevertheless, it’s unlikely that any worth discount will align with decrease international diesel costs because the workplace wants cash to help the dwindling oil fuels fund, mentioned Wisk Watnasap, director of Ofo.
The fund has been instrumental in curbing Thai diesel costs throughout a growth in international oil costs, however its restricted finances has compelled the federal government to regularly scale back its diesel subsidies.
Since mid-June, the value of diesel in Bangkok has been mounted at 34.94 baht per liter.
The authorities want to contemplate a brand new capped worth as the present worth below the subsidy scheme is about to run out by the tip of this month.
In keeping with Ofo, the diesel reference worth on Wednesday noticed a major decline of USD 9.38 per barrel from USD 123.77 per barrel.
Home diesel costs might have dropped by 32-33 baht per liter as a result of scarcity, however capped costs stay unchanged as authorities have to earn cash to fund.
Mr Visak mentioned the fund had incurred losses of 124 billion baht as of Thursday. As much as 80.4 billion baht has been spent on subsidizing diesel costs, whereas 43.2 billion has been spent on subsidies for liquefied petroleum fuel, which is used as cooking fuel in households.
The federal government had beforehand proposed a controversial scheme to gather windfall taxes from oil refineries to pump extra money into the fund, however the proposal was strongly opposed by oil firms.
A part of the oil refinery margin is taxed, the distinction between crude oil and refined oil costs, referring to the prices added to the crude oil worth through the refining course of.
The margin ultimately turns into a part of the retail oil worth that drivers pay at petrol stations.
He mentioned the cupboard is anticipated to increase the value subsidy program for an additional two years for gasohol, a mix of gasoline and ethanol, and methyl esters derived from biodiesel, diesel and palm oil.
The present subsidy is because of expire on September 24.
Officers allotted funds from the Oil Gas Fund to subsidize Gasohol E20 at 0.82 baht per liter, Gasohol E85 at 0.53 baht per liter, Biodiesel B10 at 0.5 baht per liter, and Biodiesel B20 at 3.5 baht per liter.