Oil subsidy maintained to alleviate people’s hardship

BANGKOK, 13 January 2011 (NNT) – Prime Minister Abhisit Vejjajiva said the government’s oil subsidy did not intervene with the Oil Fund mechanism, adding the government would revise the subsidy plan if the Fund balance dropped to 10 billion baht.

Speaking during his weekly TV program “Confidence in Thailand with PM Abhisit”, the Prime Minister said the government had imposed measures to alleviate people’s hardship from the high product prices which was a direct result of the skyrocketing fuel prices. The government intended to cap the price of diesel at 30 baht/liter until April to help prevent the product and service prices from soaring.

As for speculations that the subsidy could intervene with the oil fund mechanism, Mr Abhisit stated the oil fund balance still remained over 20 billion baht at the moment. At this rate, there would be over 10 billion baht left in the fund by April, provided that global fuel prices were maintained at 80-90 US dollar per barrel. At that time, the government would discuss whether to further extend its oil subsidy scheme.