Diesel dreams: Government plans 2-baht tax cut to fuel price drop below 30 baht per litre

The Excise Department is preparing a proposal to reduce diesel tax by 2 baht per litre and aiming to lower the retail price of diesel to less than 30 baht per litre according to the newly formed government.

The proposal is in the pipeline following Prime Minister Srettha Thavisin’s announcement to slash the retail price of diesel to 30 baht per litre from the current cap of 32 baht per litre. The Excise Department is currently preparing data on diesel tax reduction to present to the Ministry of Finance and the prime minister.

Initial discussions indicate a proposal to reduce the diesel tax by 2 baht per litre from the current 6 baht per litre, in accordance with government policy. However, this will require consultation with the Ministry of Energy and the Oil Fuel Fund Office regarding the application of the reduced tax, such as whether it would…