Thailand Cuts Diesel Prices Amid Global Oil Price Drop

[snoop1130]

 

In an effort to ease financial pressure at the fuel pumps, Thailand's Oil Fuel Fund Office (OFFO) announced plans to maintain diesel prices below 33 baht per litre, despite winding down the existing subsidy programme. This decision follows an upturn in OFFO's financial outlook due to a global decrease in oil prices.

 

The fiscal year 2024 brought a reduction in OFFO's losses, as spending on domestic diesel subsidies dropped. Pornchai Jirakulpisan, leader of OFFO's policy and strategy department, confirmed that while the fund will continue supporting diesel prices, no cabinet approval will be sought to extend the subsidies. However, he acknowledged the potential for global oil price fluctuations to impact their financial strategies.

 

By August, OFFO's fortunes began to improve, with monthly revenues increasing by 7 to 9 billion baht. Losses decreased from 112 billion baht in July to over 99 billion baht by September. The majority of losses were due to diesel subsidies, with some related to liquefied petroleum gas (LPG) subsidies.

 

OFFO aims to repay debts to financial institutions by September 2028. Starting November, payments of 139 million baht will begin, initially covering only the principal, with plans to increase monthly principal payments while excluding interest costs ranging from 250 to 300 million baht.

 

The financial reprieve is attributed to lower global crude oil prices during the fiscal 2024 period. Dubai benchmark oil prices dropped to $81.6 per barrel from $83.4, while diesel prices fell to $102 from $112.9, partly due to reduced demand and China's economic slowdown. Nonetheless, geopolitical tensions, including the Russia-Ukraine conflict and Israel-Hamas issues, have kept diesel prices above $100.

 

Meanwhile, the government maintains the LPG price cap at 423 baht per 15-kilogramme cylinder, continuing efforts to manage energy costs domestically.

 

File photo for reference only

 

-- 2024-11-01

 

 

[spidermike007]

Why isn't regular gas coming down in price, proportionately? 

[watchcat]

25 minutes ago, spidermike007 said:

Why isn't regular gas coming down in price, proportionately? 

 

It is not important for the CP group.

[hotchilli]

9 minutes ago, watchcat said:

 

It is not important for the CP group.

Good answer

[itsari]

58 minutes ago, spidermike007 said:

Why isn't regular gas coming down in price, proportionately? 

The Thai energy authorities rob peter to pay paul.

They distort the true market conditions .

They control the diesel , gasoline and electricity prices 

[TheFishman1]

You think 85 octane would be cut way down I remember what it used to be cheaper than diesel these greedy gas companies here they need to lower the price of all fuel prices are dropping everywhere but in Thailand TIT

[john donson]

did you ever see a price cut in europe? only increases, even the world price went down by half...

[connda]

Until the tit for tat bombing exchanges between Israel and Iran begin in earnest - then the US/NATO is sucked into the Middle East regional war and the Persian Gulf is closed.  Stay tuned.

[Peterphuket]

7 hours ago, john donson said:

did you ever see a price cut in europe? only increases, even the world price went down by half...

Not only that but the Crude Oil price has been around $ 73 per barrel for months.

So I don't understand whu now suddenly the price has go down.

It should have gone down a long time ago.

[Nid_Noi]

On 11/2/2024 at 5:39 AM, spidermike007 said:

Why isn't regular gas coming down in price, proportionately? 

Trucking, fishing and farming use mostly diesel. It has more impact on the cost of living than gasoline.

[black tabby12345]

Will it go further down if Thailand can if Thailand can beat down Russian oil 

by the free trade agreement?

 

Countries like India and China are already doing it to Poo-tin Empire.

 

A lot fewer nations now import from Rus(sanctions),  so the above 2 are using it for concession to their advantage.

 

Edited November 3 by black tabby12345

[alien365]

So is diesel going down in price or just staying the same for us who buy it? I was hoping it'd be going below 30 again.

[Gsxrnz]

The oil price is down because world demand has reduced after over correcting from the Mexican beer crisis (when oil was worthless or could cost more money to store than it was worth), and OPEC now need time to adjust production downwards to match supply and inflate the price.

 

I wouldn't suggest there is a recession looming, because we're already there. We're in that lag period between the trigger being pulled and the bullet hitting the target. Just ask Germany. 

 

[kickstart]

On 11/2/2024 at 5:39 AM, spidermike007 said:

Why isn't regular gas coming down in price, proportionately? 

Why because regular gas, or gas hole prices are higher, though tax, as they are basically helping subsidize n diesel prices, the years I have been here gas hole has nearly always been about 10 baht dearer than diesel.

Because about 90%? of all Thai goods are moved by trucks on the road any increase in diesel price would and to inflation, that happened 15 years ago when gas hole hit 43-44 baht/liter diesel was not far behind, that put another point on inflation.