Bangkok: The Oil Fund will increase diesel subsidies by another 50 satang per liter, effective tomorrow, to stabilize pump prices and mitigate the impact of global oil price fluctuations resulting from Middle East tensions.
According to Thai News Agency, Mr. Pornchai Chirakulpaisan, Director of the Policy and Planning Office at the Oil Fund Office, announced that the Oil Fund Management Committee has been closely monitoring the unrest in the Middle East and the efficient liquidity management of the Oil Fund. To maintain retail diesel prices and reduce the public and transportation sector's burden due to increased global oil prices, the committee has decided to reduce the contribution rate to the Oil Fund for diesel by an additional 50 satang per liter. This adjustment will bring the total reduction to 1 baht per liter from the previous 1.50 baht per liter, starting June 18, 2025.
The latest data shows that the price of Dubai crude oil has risen to $72.89 per barrel, up from $72.50, while diesel prices have surged to $90.28 per barrel, compared to $88.02. Meanwhile, gasoline prices have slightly decreased to $85.14 per barrel from $85.44. The primary driver of this volatility is the ongoing conflict in the Middle East between Israel and Iran, which has added uncertainty to the global energy market.
This reduction in the Oil Fund's contribution rate is a strategic measure aimed at stabilizing pump prices and easing the cost of living for the public. Consequently, the Oil Fund's income from diesel has decreased by approximately 31.07 million baht per day, dropping from 94.04 million baht to about 62.97 million baht daily. However, the income from gasoline remains steady at approximately 72.88 million baht per day.
Mr. Pornchai emphasized that this initiative underscores the Oil Fund's commitment to maintaining energy price stability during the crisis, ensuring transparency, accountability, and prioritizing public welfare. The Oil Fund will continue to monitor global oil price trends and is prepared to take further measures to alleviate the impact on the public and the national economy.