Diesel price set to drop

Motorists will again enjoy cheaper diesel by two baht a litre starting next week, after Prime Minister Abhisit Vejjajiva demanded that the state Oil Fund subsidise prices.

The premier backed a proposal by Finance Minister Korn Chatikavanij for diesel price intervention, despite stiff opposition from Energy Ministry officials.

Just two days earlier, Energy Minister Wannarat Channukul had rejected Mr Korn's idea, suggesting authorities cut fuel excise taxes if they wanted to reduce pump prices. Mr Wannarat insists that the fuel levies collected by the Oil Fund are essential to fund long-term development of alternative fuels.

The premier met late Thursday night with Mr Korn and energy officials to seek a solution to the dispute.

The result, said an Energy Ministry official who declined to be named, was that the ministry on Monday would seek approval to suspend the Oil Fund levy of 1.70 baht a litre collected on diesel.

Approval is needed from the National Energy Policy Council (NEPC), which Mr Abhisit chairs. An additional subsidy to oil traders of 0.30 baht would bring the pump price down by two baht a litre.

(Bangkok Post)

Poor oil companies, like they do not make enough money!!!

I just wished that they would lower the price of petrol too!