Government reviews oil prices; Diesel must not exceed Bt30/litre

BANGKOK, Aug 9 (TNA) — As oil prices have risen to about US$71 a barrel in Asia, Prime Minister Abhisit Vejjajiva said Sunday that concerned Thai government officials will review the country’s oil tax policy this week while insisting that retail diesel prices must not exceed Bt30 per litre.

Speaking during his weekly television and radio address, Mr. Abhisit defended his government’s recent decision to collect excise tax on oil in order to strengthen the state Oil Fund after the global oil price had dropped to between US$30-40 a barrel.

But with oil prices rising again, Mr. Abhisit said his government is ready to review its oil policy — including the Oil Fund subsidy — after global oil price had now risen to more than US$70 a barrel with the objective of prevent oil prices in the country from becoming too expensive.

The local retail price for diesel, used widely in the commercial sector, should not exceed Bt30 a litre, he said.

Presently, local price for high-speed diesel is Bt28.89 per litre.

“The Oil Fund shouIdn’t pose a burden to people if the crude oil price continues rising in future,” said Mr. Abhisit, adding that his  government properly managed both the tax and the fund in the past, and now there are  sufficient funds to subsidise oil prices whenever they rise.

It is expected that the government will focus on fuel levies collected by the Oil Fund rather than excise tax–which was increased by Bt2 to Bt7 per litre since May–in this week’s talks.

Mr. Abhisit said discussions which would focus on lowering domestic oil prices should “become transparent this Friday”. (TNA)