The worldwide diesel worth soar of US$2.74/barrel in a single day yesterday has prompted severe concern on the Power Mnistry, to the extent that it could have to permit home diesel costs to rise above the Bt30/litre ceiling.
An knowledgeable supply within the ministry stated that they could should determine whether or not to keep up home costs at about Bt30/litre, by means of elevated subsidies by the Oil Gas Fund, or enable them to rise above, as the worldwide enhance yesterday was substantial.
Shortly earlier than rise, the Gas Fund Govt Committee, chaired by Power Minister Pirapan Salirathavibhaga, determined to keep up the home diesel pump worth at no larger than 30 baht/litre, after world diesel worth on Tuesday closed at US$104.71/barrel, up US$0.69.
At this worth, the supply stated that oil merchants obtain 1.45 baht/litre in oil advertising and marketing value, however the Oil Gas Fund should enhance the subsidy for diesel by one other 40 satang/litre, to Bt4.57/litre.
The supply stated that the state of affairs is far worse immediately after world worth elevated by 2.74 {dollars} per barrel yesterday, including that, if the native pump worth of diesel is to be pegged at no more than 30 baht/litre, the Oil Gas Fund should contribute a further 40 satang/litre.
Presently, the subsidies on diesel and LPG have put the Oil Gas Fund within the pink to the tune of over 100 billion baht.
The supply additionally stated that the Power Ministry has been attempting to keep up the diesel pump prize on the present degree so long as doable, significantly in the course of the Songkran vacation interval, with the expectation that world diesel costs could drop within the close to future.
The Power Ministry can be coordinating with the Finance Ministry to increase the excise tax reduce on diesel by one baht/litre, which is because of expire on April 19.
