JAKARTA - The Thai government defended the increase in fuel prices by 6 baht per liter which came into effect on Thursday, March 26. Malay Mail quoted Thursday, March 26 reported, the decision was taken after global oil prices soared and state subsidy funds continued to be drained.
Director of Policy and Planning of the Thai Oil Fuel Fund Office, Pornchai Jirakulpaisan, said world oil prices rose from around US$198 on March 17 to US$242 on March 23. The surge, he said, immediately added pressure to Thailand's energy subsidy system.
More than 35 billion baht of subsidy funds have been used up. The outflow of funds now reaches around 2 billion baht per day. In this condition, the Fuel Fund Management Committee decided that gasoline and diesel subsidies should be reduced.
"The decision was made after considering many factors. As a result, the retail price of all types of fuel rose by 6 baht per liter," Pornchai told reporters at the Situation Management and Monitoring Center for Conflicts in the Middle East, Thursday, March 26, quoted from Malay Mail.
He said this sharp increase was indeed surprising to the public, but not to open excessive profit margins. According to Pornchai, the burden of subsidy funds is already too large after global oil prices continue to rise.
The Fuel Oil Fund Office announced the increase on Wednesday, March 25 evening. The policy will take effect at 05.00 am on Thursday for all types of fuel.
Checking at the Bangchak Corporation filling station showed that the price of 95-grade Gasohol was 41.05 baht per liter, 91-grade Gasohol rose to 40.68 baht, and B7 Diesel was 38.94 baht per liter.
Responding to criticism of the announcement late at night and triggering speculation of hoarding, Pornchai explained that Thailand refers to the Singapore market oil price which closes at around 19.00. After that, the price calculation and currency conversion are usually completed at around 20.00, then discussed in a meeting at 21.00 which often runs until late because the government also compares prices in the region.
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