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Oil Fuel Fund set to be replenished next month
The Oil Fuel Fund Office (Offo) expects to obtain the first portion of loans as part of a total of 20 billion baht from commercial banks next month as its fund, used to subsidise energy prices, is nearly empty.
The loans are to repay oil and gas traders the money they used to cap diesel prices at 29.94 baht a litre and fix prices of liquefied petroleum gas (LPG) at 318 baht per 15-kilogramme standard cylinder under the government’s price subsidy programme, said Offo director Wisak Watanasap.
The Offo has spent a total of 61.6 billion baht subsidising diesel and LPG prices since last year, Mr Wisak said.
The market price of diesel, including taxes, is estimated at 39-40 baht a litre, while the market price of LPG is 615 baht per cylinder.
With the Dubai crude oil reference price at US$109 a barrel, the Offo expects to spend 16 billion baht a month to subsidise the…
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