Government plans 2-baht tax cut to fuel price drop below 30 baht per litre

[snoop1130]

 

The Excise Department is preparing a proposal to reduce diesel tax by 2 baht per litre and aiming to lower the retail price of diesel to less than 30 baht per litre according to the newly formed government.

 

The proposal is in the pipeline following Prime Minister Srettha Thavisin’s announcement to slash the retail price of diesel to 30 baht per litre from the current cap of 32 baht per litre. The Excise Department is currently preparing data on diesel tax reduction to present to the Ministry of Finance and the prime minister.

 

Initial discussions indicate a proposal to reduce the diesel tax by 2 baht per litre from the current 6 baht per litre, in accordance with government policy. However, this will require consultation with the Ministry of Energy and the Oil Fuel Fund Office regarding the application of the reduced tax, such as whether it would be used to reduce the retail price of fuel for the public or to offset the burden on the Oil Fund.

 

By Nattapong Westwood

Caption: Photo by Erik Mclean on Unsplash

 

Full Story: https://thethaiger.com/news/national/thai-excise-department-plans-diesel-tax-cut-by-2-baht-to-reduce-retail-prices

 

-- The Thaiger 2023-09-07

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[Cardano]

Great to see the Thai government doing their bit in lowering the country's carbon footprint, should get another environmental award for this. 

[rabas]

 

Electricity! Do the electricity.

 

[KhunBENQ]

Absolutely crazy.

Diesel is already favored and gasoline users pay the price.

 

57 minutes ago, Cardano said:

Great to see the Thai government doing their bit in lowering the country's carbon footprint, should get another environmental award for this. 

Tell that to the "environmental activists" in the west, a country that promotes cheaper Diesel. In Germany "
old" Diesel cars are banned from the inner cities.

Old like 6 years old.

Edited September 7, 2023 by KhunBENQ

[kickstart]

42 minutes ago, KhunBENQ said:

Absolutely crazy.

Diesel is already favored and gasoline users pay the price.

Been like it for a good few years' gasoline has nearly always been 4-5 baht dearer than diesel, you could say gasoline is subsidizing diesel.

Expensive diesel increases inflation, as 90%??? of all goods in Thailand are hauled be road, this happened 10-12 years ago when fuel prices went up big time, my then bowl of lunch time noddle's went up twice in as many weeks. 

[hotchilli]

9 hours ago, kickstart said:

Been like it for a good few years' gasoline has nearly always been 4-5 baht dearer than diesel, you could say gasoline is subsidizing diesel.

Diesel is less expensive to produce than petrol?

[retarius]

Who is going to pay for this loss of revenue?

[KhunLA]

30 minutes ago, retarius said:

Who is going to pay for this loss of revenue?

All the other petrol users.  @ 39+ now.

E85 used to be 28% less than 91

Now it's like 5% less than 91.

 

Making EVs look very attractive now, for those that can charge at home.

[jacko45k]

13 hours ago, Cardano said:

Great to see the Thai government doing their bit in lowering the country's carbon footprint, should get another environmental award for this. 

Damned if they do, damned if they don't.........

[nycjoe]

They are under pressure from the many trucks using diesel in commodity transport, there was a threat of a work stoppage 2 years ago when the price went above  30 baht. Also the farmers pickups are all diesel.

[retarius]

51 minutes ago, KhunLA said:

All the other petrol users.  @ 39+ now.

E85 used to be 28% less than 91

Now it's like 5% less than 91.

 

Making EVs look very attractive now, for those that can charge at home.

You know they just passed a measure in the UK to discourage people from charging at home. For home charging you need to have a separate meter installed. The tariff on this meter is much higher than the rate for general home use. Also they have introduced measures that prevent charging at peak electricity usage times ie no charging in mornings or evenings. Imagine you wake up in the morning and realise you forgot to charge your car but need to go to work, sorry you can't charge it after 5am in then morning. I always want to know how governments were going to replace the tax revenue from petrol, now I know. Look for this to be replicated around the globe, it's not even expensive tech to do it. 

[KhunLA]

6 minutes ago, retarius said:

You know they just passed a measure in the UK to discourage people from charging at home. For home charging you need to have a separate meter installed. The tariff on this meter is much higher than the rate for general home use. Also they have introduced measures that prevent charging at peak electricity usage times ie no charging in mornings or evenings. Imagine you wake up in the morning and realise you forgot to charge your car but need to go to work, sorry you can't charge it after 5am in then morning. I always want to know how governments were going to replace the tax revenue from petrol, now I know. Look for this to be replicated around the globe, it's not even expensive tech to do it. 

That's just sad, and people actually want to live there.  No wonder Brits are a large percentage (relative) of expats, worldwide.

[digger70]

6 hours ago, hotchilli said:

Diesel is less expensive to produce than petrol?

Diesel fuel is a less refined petroleum distillate than petrol, so it should always be cheaper to produce. The problem with diesel prices has more to do with the laws of supply and demand for various petroleum products, not the actual cost of production.

[trainman34014]

18 hours ago, kickstart said:

Been like it for a good few years' gasoline has nearly always been 4-5 baht dearer than diesel, you could say gasoline is subsidizing diesel.

Expensive diesel increases inflation, as 90%??? of all goods in Thailand are hauled be road, this happened 10-12 years ago when fuel prices went up big time, my then bowl of lunch time noddle's went up twice in as many weeks. 

But don't expect to see your bowl of Noodles coming down as a result of this 2 Baht reduction; more likely to go up again !

[KannikaP]

19 hours ago, KhunBENQ said:

Absolutely crazy.

Diesel is already favored and gasoline users pay the price.

 

Tell that to the "environmental activists" in the west, a country that promotes cheaper Diesel. In Germany "
old" Diesel cars are banned from the inner cities.

Old like 6 years old.

Same in the ULEZ zone in London, yet a few years ago  the Govt were promoting diesels.

Here in Phitsanulok, diesel B7 is Bht 32.37 per litre, so how can a 2 baht reduction drop it below 30?

[KannikaP]

5 hours ago, nycjoe said:

Also the farmers pickups are all diesel.

Sod the farmers, MY Pick up is diesel.