Thailand: Diesel excise tax cut up in the air

  • The Finance Ministry has yet to consider cutting the diesel excise tax and will continue to use the Oil Fund to stabilise the retail diesel price, said Finance Minister Arkhom Termpittayapaisith.
  • The Oil Fund, currently valued at around THB7bn, is used to subsidise the retail diesel price at THB2 per litre, which has brought down the diesel price to the current THB30 per litre. The cabinet recently approved the fund to borrow THB30bn.
  • Truckers have renewed their call for the price of diesel to be capped at THB25 per litre. The move was organised by the Land Transport Federation of Thailand (LTFT).
  • Earlier a Finance Ministry source, who requested anonymity, said if Thailand lowers the diesel excise tax by THB5 per litre to peg the retail diesel price at THB25 per litre, this will cost the state coffers up to THB150bn baht.

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