BANGKOK, April 26 (TNA) – Representatives of the Land Transport Federation of Thailand will show up at Government House on April 27 to ask the government to continuously cap the diesel price at 30 baht per liter as the government plans to stop the price limitation on May 1.
Apichart Prairungruang, chairman of the federation, said its representatives would send the written request to the prime minister because without the longer limited diesel price, people would suffer from higher prices. The prices of goods were already high and if the government stopped capping the diesel price at 30 baht per liter, truck operators would raise their freight charges by 20% right away, he said.
He demanded the replacement of the energy minister and said there were solutions for the government to cut the diesel price by 5-6 baht per liter.
According to Mr Apichart, the government can suspend the content of expensive biodiesel in local diesel and consequently the diesel price will fall by 1.50-2.00 baht a liter.
The government should also cut the excise tax on diesel from 3.20 baht to 0.20 baht per liter at the same level of the tax on jet fuel. This will decrease the diesel price by about 3 baht per liter.
Besides, the Energy Ministry can adjust the retail oil price formula that is based on imported oil prices from Singapore and the local diesel price can thus go down by about one baht per liter.
Meanwhile, Kulit Sombatsiri, permanent secretary for energy, said Energy Minister Supattanapong Punmeechaow had yet to lay down a policy on the gradual increase in the diesel price from May 1.
The government planned to spend its Oil Fund on subsidizing only half the diesel price above 30 baht per liter from May 1. At present, the fund pays about 11 baht per liter for the diesel subsidy. If the subsidy is halved, the diesel price can rise by 5.50 baht per liter. To prevent the price surge, the energy minister planned gradual increments instead.
The Oil Fund will stop subsidizing the price of premium diesel from May 1 and its price will rise by about 11 baht per liter to 47-48 baht a liter. (TNA)
