Thai cabinet approves ฿20bn loan to reduce diesel prices

[snoop1130]

 

Thailand’s cabinet today (Tuesday) approved a 20 billion baht loan, from the State Oil Fund, to maintain diesel prices at no more than 30 baht per litre for 4 months.

 

The move comes as, earlier today, hundreds of truckers rallied in protest of the high diesel prices, currently between 29-35 baht/litre, and demanded the government bring it down to 25 baht per litre.

 

Before the cabinet announced its decision to seek a loan, a group of truckers, under the Land Transport Federation, threatened to hike transportation fees by 10%.

 

Full Story: https://www.thaipbsworld.com/cabinet-approves-฿20bn-loan-to-bring-down-diesel-prices-as-truckers-rally-tuesday/

 

-- © Copyright Thai PBS 2021-11-16

 

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[djayz]

So what happens in 4 months time when this deal expires? 

 

[Petey11]

Fuel prices are rising over the whole world. Government stepping in to artificially keep price low will only delay the inevitable in my opinion. Also reminiscent of old Soviet block era where price is controlled. If the price starts to drop will they keep it artificially higher to recoup the money they have spent pegging it at 30bht?

[Chelseafan]

8 minutes ago, Petey11 said:

Fuel prices are rising over the whole world. Government stepping in to artificially keep price low will only delay the inevitable in my opinion. Also reminiscent of old Soviet block era where price is controlled. If the price starts to drop will they keep it artificially higher to recoup the money they have spent pegging it at 30bht?

Didn't someone try to control the price of rice a few years ago....Just saying...

 

 

[RichardColeman]

[SmartyMarty]

These guys are NOT blessed with financial genius.

[OneMoreFarang]

5 hours ago, Petey11 said:

Fuel prices are rising over the whole world. Government stepping in to artificially keep price low will only delay the inevitable in my opinion. Also reminiscent of old Soviet block era where price is controlled. If the price starts to drop will they keep it artificially higher to recoup the money they have spent pegging it at 30bht?

In principle you are right. But then there are those stupid people who somehow think the government is responsible when the world oil prices rise. Now the government can try to explain to those people the facts of life. But will they understand it? It's so much easier to just give those stupid people what they want.

[herfiehandbag]

Who will receive the money?

 

Where will the money go?

 

Who will manage its disbursement?

 

Who will manage/arrange/be responsible for it's repayment?

 

Or am I just being silly?

Edited November 17, 2021 by herfiehandbag

[zzaa09]

If they're looking to help out the ailing economy and whatnot, why not choose to spend this B20bn more practically and creative - instead of the usual manipulated subsidies. 

[herfiehandbag]

25 minutes ago, zzaa09 said:

If they're looking to help out the ailing economy and whatnot, why not choose to spend this B20bn more practically and creative - instead of the usual manipulated subsidies. 

Well perhaps, from one perspective, they have - they have just released a chunk of cash for their mates to spend...

 

[hotchilli]

11 hours ago, snoop1130 said:

Before the cabinet announced its decision to seek a loan, a group of truckers, under the Land Transport Federation, threatened to hike transportation fees by 10%.

Bought 30 size-O fresh eggs yesterday from a large street vendor yesterday... 110 baht

last week they were 100 baht... up 10%

[ronster]

B20bn loan !! Yet still the truck drivers don’t get the price anywhere near what they wanted , so what is the B20 bn actually going to do ?

Will make zero difference to truck drivers who will basically still be paying around 30 bht a litre .

I foresee some Mercedes dealerships getting an influx of orders for new S class cars .

[Kildonan]

1 hour ago, hotchilli said:

Bought 30 size-O fresh eggs yesterday from a large street vendor yesterday... 110 baht

last week they were 100 baht... up 10%

Finally, cauliflowers in Supercheap,, price 145 baht/kg! 

[digger70]

12 hours ago, djayz said:

So what happens in 4 months time when this deal expires? 

 

The Truckies will strike again and /or the transport charges will go up.

[RafPinto]

2 hours ago, hotchilli said:

Bought 30 size-O fresh eggs yesterday from a large street vendor yesterday... 110 baht

last week they were 100 baht... up 10%

That's normal. 

Chicken also deserve a pay-rise. 

[Sydebolle]

What a load of bo11ocks. A loan from the government to the government? 

The petrol is being unorthodoxically taxed in most countries and Thailand is no exception to the rule. What the semi-divine government did is to reduce their take on petrol taxes. 

What people, anywhere, have to understand is, that the government does not earn, make, produce anything. If they give something, they took it away somewhere else, i.e. taxpayers money. 

In short, any handout is financed by another tax payer and not a lovely gift of the government nor the Prayuths, Prawits and consorts .......

[crazykopite]

I would like to know where all the money comes from all I’ve read since Covid is how much they are spending it seems they have a never ending hole somewhere in government house that is full of Thai Baht and what happens after 4 months another loan !