Plans to increase the diesel subsidy

BANGKOK, 3 March 2011 (NNT) – The Energy Policy and Planning Office (EPPO) plans to increase the diesel subsidy if the oil price in the world market still soars continuously.

EPPO Director Viraphol Jirapraditkul said his office would call a meeting of the Committee on Energy Policy Administration (CEPA) to consider additional amount of subsidy to the domestic diesel price if the Singapore oil market closed at a higher price today.

The CEPA is responsible for keeping the domestic retail price of diesel below 30 baht per liter by using the money from the fuel oil fund in line with the government’s diesel subsidy policy.

According to the EPPO director, about 247 million baht is being allotted from the fuel oil fund to subsidize the higher diesel price daily, and a total of 8.57 billion baht has been spent so far. As a result, only 15 billion baht is currently left in the fund.

Mr Viraphol estimated that the global oil price would rise continuously as a result of political uprising in the Middle East. He said the Dubai Crude price currently stands at 109 US dollars per barrel while high-speed diesel price at 128.16 US dollars, increasing by 2 US dollars.