The full impact of international fuel price rises and inflation is about to arrive in Thailand. After many months of shielding the full impact of price rises, mostly with a diesel subsidy which capped the pump price at 30 baht a litre, the prices are now set to soar
The government’s diesel subsidy has been in place since last October but the cap, keeping the price at 30 baht a litre, finished at the end of April. After threatening that the price could rise to 40 baht a litre, the Thai Energy Minister has now arrived at a new cap of 32 baht, still heavily reliant of a dwindling pool of subsidy funds. But he’s warned the cap and government subsidies can’t last forever.
Most of Thailand’s transport logistics rely on diesel fuel, so any increases of fuel costs will impact almost anything that is delivered from one place to another. So that’s EVERYTHING.
Economists fear that…
