Diesel excise tax reduced by five baht/litre for two months amid high prices

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Thailand’s cabinet decided to cut diesel excise tax by 5 baht/litre for two months today (Tuesday), starting May 21, to help ease the financial burden on consumers.

The government previously reduced the excise tax on diesel by 3 baht/litre, a measure which is due to expire on May 20.

Diesel prices at the pump are currently capped at 32 baht/litre, an increase of two baht since the end of last month. Decisions are made on a weekly basis whether to gradually increase the price by 1 baht/litre until the price reaches the ceiling of 35 baht/litre, after which the Ministry of Energy will review what it must be done next, taking into account world oil prices.

After the cabinet meeting this afternoon, Prime Minister Prayut Chan-o-cha told the media that the government wanted to subsidize all kinds of fuels, to help all consumers, but the government should take the national budget into consideration. , as well as its capacity to absorb the additional cost.

He revealed that oil subsidies have so far cost taxpayers about 70 billion baht, including the latest reduction in excise duty on diesel fuel.

He also said the Fuel Fund, which used to subsidize oil prices, is in the red and the government had to get a loan to finance the oil subsidy program.

The latest diesel excise tax cut will cost the state about 20 billion baht in lost revenue.
Regarding benzene, the Prime Minister said that previously the government subsidized the price of benzene at the pump for certain groups, adding that extending this assistance to everyone would cost a lot of money.

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