No planned talks on oil price cut with EPPO

BANGKOK, 25 June 2010 (NNT) – Minister of Energy Wannarat Channukul clarified that the reduction of oil prices by 2 THB per liter was not on the agenda of the Energy Policy and Planning Office (EPPO) meeting to be held on 28 June 2010.

On Thursday, Deputy Finance Minister Man Pattanothai stated that a proposal for a price decrease of 2 THB per liter on all types of fuels would be presented during the EPPO meeting next Monday. He suggested that the Oil Fund contribution, the fuel levy and the fuel excise tax be cut to allow for the oil price reduction.

However, MD Wannarat responded that such price adjustment had not been included in the meeting’s agenda and would not yet be discussed. He also voiced opposition to the plan to slash the contribution towards the Oil Fund, adding that a deduction from the oil excise tax would be a more reasonable option.

The Energy Minister explained that at present the Oil Fund was already collecting little amounts from oil sales; therefore, any further cut could affect its stability. He pointed out that the reserved budget in the Oil Fund should stand at no less than 20 billion THB, which was considered sufficient for emergency uses.