Bangkok: The Ministry of Energy has announced plans to extend the current diesel price cap of 33 baht per liter until December 31, 2024, as part of its efforts to mitigate economic pressure on citizens amidst ongoing global challenges.
According to Thai News Agency, Deputy Prime Minister and Energy Minister Pirapan Salirathavibhaga stated that the decision aims to alleviate the financial burden on the populace. This extension comes as the current price stabilization measure is set to expire on October 31, 2024. The extension is seen as a critical move, particularly as geopolitical tensions in the Middle East continue, which could potentially escalate crude oil prices.
Despite the potential for increased oil prices due to the conflict in the Middle East, the Ministry remains confident in its ability to maintain the diesel price cap. The current assessment indicates that there should be no imminent issues, and even in the event of escalating situations, Thailand’s oil reserves-which consist of storage tanks a
nd ships-hold a combined reserve sufficient for 70 days, surpassing the legal requirement.
However, the financial status of the Oil Fund as of October 13, 2024, shows a deficit of 95,333 million baht, split between a negative 47,885 million baht in the oil account and a negative 47,448 million baht in the LPG account. These figures underscore the financial challenges faced by the government in maintaining fuel price stability.