Diesel price to be maintained at 30 baht per liter

[webfact]

 

By Tanakorn Sangiam

   

BANGKOK (NNT) - The government’s energy policy administration council has approved a proposal to subsidize the pricing of diesel in order to maintain the retail price at 30 baht.

 

Deputy Prime Minister and Minister of Energy Supattanapong Punmeechaow said the subsidy will be provided from the 9.2 billion baht Energy Fund to maintain the retail price of diesel at 30 baht per liter, as the increase of crude oil price has driven up the current retail price in Thailand to over such threshold.

 

The council has also approved a contingency plan to seek a 20 billion baht loan to support the Energy Fund in case of low liquidity, or should the Dubai crude oil price exceeds 87.5 US dollars per barrel.

 

The Minister of Energy said the government could lower the excise tax for petroleum to help bring down the retail price, which is an option exercised by previous governments.

 

Meanwhile, LPG prices will continue to be capped at 318 baht per 15-kilogram cylinder to help vendors and to prevent price increase of consumer goods.

 

The minister also mentioned that truck companies affected by the current situation are entitled to special Social Security benefits provided by the Ministry of Labour. Each operator can receive a payout of 3,000 baht per one employee, with a maximum amount capped at 200 employees.

 

-- © Copyright NNT 2021-10-22

 

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[Gold Star]

Oil prices are now merely around a normal price range that they have been over the last 30 years when adjusted for inflation.

 

Exploration and production capital spent globally has been only 70% of what is needed just to keep production flat.

 

Let's see how long this subsidy lasts when oil runs up through $100 and onwards. 

[ExpatOilWorker]

13 minutes ago, Gold Star said:

Oil prices are now merely around a normal price range that they have been over the last 30 years when adjusted for inflation.

 

Exploration and production capital spent globally has been only 70% of what is needed just to keep production flat.

 

Let's see how long this subsidy lasts when oil runs up through $100 and onwards. 

That is correct as shown in the below graph. 

Always nice when a government subsidize oil to keep the population hooked on the black gold. $100 here we come.

[hotchilli]

5 hours ago, webfact said:

The council has also approved a contingency plan to seek a 20 billion baht loan to support the Energy Fund in case of low liquidity, or should the Dubai crude oil price exceeds 87.5 US dollars per barrel.

I think it's going to rise more yet.. 

[law ling]

It has always intrigued me that the cost of this precious, non-renewable resource (oil), is less than the cost of beer, and even premium brands of water.

[Eric Loh]

2 hours ago, hotchilli said:

I think it's going to rise more yet.. 

it will rise more as winter will be bitterly cold due to global warming. 

[Autonuaq]

not sure why the prices are going up. the reason is surely not the barrel price.

 

the oil prices have been over 120 to 150 USD per barrel in the past and then diesel  price was low. 

on barrel is about 159 liter (158,9872 liter) and not per liter. This makes that the changes is price per liter oil is dived by about 159.

this they make many products in the distillation process 

• Petrol about 71.92 liter
• Diesel about 34.83 liter
• other products about 22.33 liter
• Kerosine about 15.52 liter
• 'Heavy oil' about 8.71 liter
• LPG  about 7.19 liter
• Asphalt 4.92 liter