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Fuel fund forecast: Thai govt keeps diesel prices low, faces a billion-baht burnout
Picture courtesy of Dailynews. The Oil Fuel Fund Office (OFFO) projected a loss of nearly 100 billion baht due to the government’s decision to maintain domestic diesel prices below 30 baht a litre until December. This forecast assumes an increase in global diesel prices during the winter, a period typically marked by heightened energy demand.
In 2022, the average global diesel prices for August and September stood at US$116.7 per barrel. However, prices spiked to US$176 per barrel amid the conflict between Russia and Ukraine.
To subsidise the diesel price at 8.02 baht per litre and liquefied petroleum gas (LPG) at 9.2 baht per kilogramme, the Offo has been utilising funds. It also collects a levy ranging from 0.81 to 9.38 baht per litre from gasoline and gasohol users to support the fund.
Nevertheless, the daily levy collection of 153 million baht falls short of the 573 million…
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