BANGKOK, Nov 25 (TNA) – The government spokesman expressed gratitude towards transport operators for their understanding and acceptance of the government’s measures to cap the diesel price from December to March next year.
Government spokesman Thanakorn Wangboonkongchana said the government decided to limit biodiesel production to the B7 formula only and cap the diesel trade margin at 1.40 baht per liter from Dec 1 to March 31. With the measures, it expected the diesel price to fall to 28 baht per liter next month.
Apichart Prairungruang, chairman of the Land Transport Federation of Thailand, welcomed the measures that the government’s Energy Policy Administration Committee approved on Nov 24, Mr. Thanakorn said.
From Dec 1 to March 31 the government would suspend the production of B10 and B20 diesel that had the biodiesel contents of 10% and 20% respectively, he said.
The sole B7 diesel production and the government’s request for oil traders to reduce their oil trade margin to 1.40 baht per liter of diesel should cut the local diesel price to about 28 baht per liter in the next four months, Mr. Thanakorn said.
The measures would also decrease the monthly financial burden of the State Oil Fund subsidizing the diesel price from 4 billion baht to 3.88 billion baht in the four months, he said. (TNA)