The Energy Policy and Planning Office (EPPO) has revealed a plan to propose for the continuation of the diesel price cap scheme, which is currently due to end this Sunday, amid concerns over a 98 billion baht deficit in the state Oil Fuel Fund. The scheme, which reduces the retail price of diesel by 4.17 baht per liter through subsidies, faces a critical decision in the future.
EPPO Director-General Veerapat Kiatfuengfoo indicated plans to seek the Finance Ministry’s nod in an upcoming cabinet session on whether to lower the excise tax on diesel or to use state budget funds to sustain the cap.
Initiated in September last year and adjusted several times since then, the diesel price cap sought to alleviate living costs for the public amidst unpredictable global oil price trends.
A mandate has also been issued to the Electricity Generating Authority of Thailand (EGAT) to keep electricity tariffs capped at an average of 4.18 baht per kilowatt-hour, further highlighting efforts by the central administration to control energy prices. (NNT)
