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Thailand to use fuel subsidy to help consumers as global oil price rises

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Thailand to use fuel subsidy to help consumers as global oil price rises

Reuters Staff

 

2018-05-22T112824Z_1_LYNXNPEE4L0VX_RTROPTP_3_THAILAND-OIL-REFINERY-THAI-OIL.jpg

FILE PHOTO: Thailand's largest oil refinery, Thai Oil, lights up in the evening in Sri Racha August 17, 2004. REUTERS/Sukree Sukplang/File Photo

 

BANGKOK, (Reuters) - Thailand will use a state oil fund to support domestic retail fuel prices to help consumers cope with rising global oil prices, the energy minister said on Tuesday.

 

The fund of about 30 billion baht ($936.9 million) will absorb 50 percent of any increase in retail prices, Energy Minister Siri Jirapongphan told reporters.

 

“If retail oil prices rise 1 baht, the fund will help 0.50 baht,” Siri said.

 

“This will help ease the impact from oil prices, which could rise to over $80 per barrel,” he added.

 

The government aims to keep the domestic retail diesel price at 30 baht per litre, Siri said, as the price had risen by 3 baht per litre to about 29.8 baht over the past two months.

 

The subsidy plan will need approval from the Energy Policy and Planning Office, which will meet this week. ($1 = 32.02 baht)

 

(Reporting by Satawasin Staporncharnchai Writing by Orathai Sriring Editing by Robert Birsel)

 
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-- © Copyright Reuters 2018-05-23

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With the wholesale price of diesel at around $2 per gallon, that equates to around 17 baht per liter.

 

So, what they're holding out as a subsidy is really just a partial tax reduction.

 

 

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Diesel cost to be limited to no more than 30 baht per liter

 

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BANGKOK, 23rd May 2018 (NNT) – The Ministry of Energy has decided to limit the price of diesel fuel to no more than 30 baht per liter while revealing Biodiesel B20 will be introduced at 3 baht less than normal diesel in July. 

Minister of Energy Siri Jirapongphan has disclosed a meeting of the Energy Policy and Planning Office (EPPO) commission this week will discuss measures in response to the growing cost of fuel on the world market with an emphasis on maintaining diesel fuel at 30 baht per liter. The fuel is currently 29.79 baht per liter and any rise beyond 30 could impact cost of living. 

Among coming measures is an increase in the proportion of palm oil in biodiesel, from seven to 20 percent, which will help transport trucks by lowering the retail price of the fuel to 27 baht per liter. The adjusted fuel will hit the market in either late June or early July. In the interim, the National Fuel Fund, which is currently worth 30 billion baht, will be used to maintain diesel at no more than 30 baht per liter. Use of the fund may continue if the fuel’s global cost continues to rise. 

Liquefied Petroleum Gas (LPG) has also risen in cost but is not expected to have any lasting impact. The onset of summer is projected to cut demand for LPG in the northern hemisphere.

 
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-- nnt 2018-05-23

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If anyone believes a single word that comes out of the junta liars' mouths - I've got a nice bridge for him or her to purchase on Jupiter.

Nothing this junta does is ever genuinely to benefit the people. It is only to benefit itself.

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Fuel consumption is about to take off in Thailand and expect to see more cars on the street.

 

Car sales in Thailand is around 50-60,000 units/month and most cars last about 20 some years before they hit the scrap yard. But, from late 1997 to 2000 cars sales in Thailand very very low, as low as 2,000 cars/month, so few cars will exit the market in the next few years.

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The premium diesel too ?  Like the ever more expensive Shell V-Power Diesel . The difference between the regular diesel and V-power keeps is getting bigger and bigger. sleep.gif.a507910826fcc4a69fe4b994b709cbc5.gif

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28 minutes ago, BuaBS said:

The premium diesel too ?  Like the ever more expensive Shell V-Power Diesel . The difference between the regular diesel and V-power keeps is getting bigger and bigger. 

 

That would make sense if the "subsidy" is meant to appease the masses and the transport companies who use the cheapest diesel they can find.  Anyone who needs the V-power can probably afford the difference.  It sucks.  But if they can't afford the premium, they probably need to rethink their vehicle choice.

 

 

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Just what the Country needs.

Keep the Fuel costs down so the Muppets can keep glugging it into their weapon of choice to continue committing  murder.on the roads.

 

 

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Yeah, all the indebted Thais driving 1+ million baht heavy-duty pickup trucks and SUVs which only get less than 10 kilometers to the liter will be whining to the government to help them out.  Driving a city car that gets 24+ kilometers per liter and is paid off -- I have no sympathy.  Let them whing.

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10 hours ago, webfact said:

The fund of about 30 billion baht ($936.9 million) will absorb 50 percent of any increase in retail prices

Transfer another Bt30 billion from the recently approved Bt100 billion for use in Thai Niyom Yang Yuen scheme and cover 100%.

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4 hours ago, impulse said:

 

That would make sense if the "subsidy" is meant to appease the masses and the transport companies who use the cheapest diesel they can find.  Anyone who needs the V-power can probably afford the difference.  It sucks.  But if they can't afford the premium, they probably need to rethink their vehicle choice.

 

 

I need V-power to get through the yearly car inspection.

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16 hours ago, BuaBS said:

The premium diesel too ?  Like the ever more expensive Shell V-Power Diesel . The difference between the regular diesel and V-power keeps is getting bigger and bigger. sleep.gif.a507910826fcc4a69fe4b994b709cbc5.gif

Is there any tangible benefit to using the premium diesel?. I’ve occasionally bought it (esso version) without really understanding why. From my uk experience I understood that buying super unleaded (99 octane) was only a benefit to vehicles designed to run on it like my M3 .

2/3rds of uk fuel price is tax.!

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The price of gasoline products will continue to rise at the pumps because unlike diesel it is not subsidised by the Government. In fact the tax on gasoline is used to suppress the real cost of diesel by subsidy so stop whining you oil burners and turn off your engines when parked. I object to the noise and toxic fumes.

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7 hours ago, nchuckle said:

Is there any tangible benefit to using the premium diesel?. I’ve occasionally bought it (esso version) without really understanding why. From my uk experience I understood that buying super unleaded (99 octane) was only a benefit to vehicles designed to run on it like my M3 .

2/3rds of uk fuel price is tax.!

I always used PTT or Esso regular diesel , and I can see the black smoke come out (maybe from the 7+ % palm oil ). Since I use Shell premium , it is much cleaner .

But you get hit twice : much higher cost at the gasstation AND higher consumption by about 10 % .

Only benefit is less stress (for me) , going to the mandatory yearly car inspection.

 

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