Government’s cost-cutting shock eases financial pressure

[snoop1130]

 

The Employers’ Confederation of Thai Trade and Industry (EconThai) expressed approval for the Thai government’s latest move to slash both electricity and diesel costs. This initiative is aimed at alleviating the financial pressure on households and businesses.

 

The reduction in power tariff was confirmed yesterday, following Prime Minister Srettha Thavisin‘s policy statement announcement in parliament, reports Bangkok Post.

 

The new power tariff is set at 4.104 baht per kilowatt-hour, a decrease from the previous rate of 4.45 baht. Additionally, a price ceiling of 30 baht per litre has been established for diesel, a slight drop from the current 31.94 baht per litre.

 

Vice-chairman of EconThai, Tanit Sorat, believes that these reductions will prove beneficial for businesses, particularly those in the logistics sector, as it will enable cost-saving. He also said that consumers should expect a stable price for goods.

 

“Such measures will ultimately deter an increase in the price of goods, which favours households.”

 

Despite this, Sorat also voiced concerns about the potential negative impact these measures could have on the state budget, potentially creating future financial problems for citizens.

 

The updated power tariff will be applicable from September to December, replacing the current rate. The revised diesel retail price is due to come into effect from September 20.

 

By Alex Morgan

Caption: Photo by Ronald Langeveld on Unsplash

 

Full story: The Thaiger 2023-09-14

 

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[retarius]

Got my vote.

[hotchilli]

11 hours ago, retarius said:

Got my vote.

I haven't got one... 

[mikebell]

Cheaper diesel will nothing for the cleaner greener air campaign. 

[nausea]

Every little helps.

[The Theory]

16 hours ago, snoop1130 said:

potentially creating future financial problems for citizens.

Governments never lose, they will soon increase other things prices to become "positive". Usually the target is what people don't care much about price or no choice such as alcohols and tobacco. .