Bangkok: Ministry of Energy is concerned about liquidity problems in the fuel fund. Most recently, diesel was subsidized at almost 5 baht per liter, while the Treasury reduced the tax by only 1 baht per liter. Negotiated to reduce the tax by an additional 2 baht if the government continues to maintain diesel at 30 baht. Mr. Wisak Wattanasap, Director of the Fuel Fund Office (NFC), said that at this time the financial position and liquidity management trends were presented to the meeting of the Fuel Fund Executive Committee (FPF) to find out. Guidelines for action By the Liquidity Management Subcommittee Chaired by the Permanent Secretary of the Ministry of Finance, the committee is considering jointly finding ways to prevent and solve problems. By the burden of the fund Take care of both the price of cooking gas At a price not exceeding 423 baht/drum size 15 kg. Caring for the gasoline group and take care of diesel not exceeding 30 baht per liter Meanwhile, world market prices are high because they have bee n affected by unrest in many areas, both the Middle East and Russia-Ukraine This causes more than 200 million baht of money to flow out of the fund per day, or approximately 7 billion baht/month. Most of it is taking care of diesel, which has a high usage of about 68-70 million liters/day. The fund's position as of January 28, 2024 is negative 84,349 million baht, with a loan burden of 110 billion baht (75 billion has been withdrawn to enhance liquidity. baht) in the loan section Currently paying only interest of approximately 150 million baht/month. and will begin to gradually pay off the principal in November 2024. Mr. Wisak said Overview if not prepared in advance The fund will have liquidity problems. Therefore, it was presented to the policy department on how to lay out the guidelines. Especially taking care of diesel fuel. which is the main oil that people use for transportation Agriculture and others, according to the resolution on December 28, 2023, there was a resolution to approve the use of the me chanism The Fuel Fund helps subsidize the retail price of diesel at 30 baht/liter for 3 months from 1 Jan. - 31 Mar. 2024, which is in accordance with the Cabinet resolution of 19 Dec. 2023, which is to continuously freeze the cost of living for the people. After the measure to reduce the excise tax on diesel fuel to 2.50 baht, which ended on 31 December 2023, and there was a new round of diesel tax reduction of just 1 baht per liter, effective from 20 Jan. - 19 Apr. 2024. Mr. Prasert Sinsukprasert Permanent Secretary of the Ministry of Energy said that oil taxes and the Oil Fund It's like a left-right bag. To take care of people's living expenses As for diesel, at the moment the Fund has to subsidize it by almost 5 baht/liter, but the tax is only reduced by 1 baht/liter. Therefore, it is in the process of discussion with the Ministry of Finance. How to continue taking care of each other In the past There will be guidelines to take care of: 1. Tax mechanism. If the price criteria of 30 baht is to continue to be used, there may be an additional tax reduction of approximately 2 baht/liter. 2 If the tax is not reduced, while the fund will have liquidity problems. Guidelines for reviewing gradually moving the price of diesel from 30 baht to a higher maintenance level, such as 32 baht/liter, will it be implemented or not? We will hasten to summarize the guidelines and present them to Mr. Peeraphan Saleerathaviphak, Deputy Prime Minister and Minister of Energy, for further consideration. In the past, Mr. Peeraphan Always emphasized on taking care of people's living expenses Source: Thai News Agency

Bangkok: Ministry of Energy is concerned about liquidity problems in the fuel fund. Most recently, diesel was subsidized at almost 5 baht per liter, while the Treasury reduced the tax by only 1 baht per liter. Negotiated to reduce the tax by an additional 2 baht if the government continues to maintain diesel at 30 baht. Mr. Wisak Wattanasap, Director of the Fuel Fund Office (NFC), said that at this time the financial position and liquidity management trends were presented to the meeting of the Fuel Fund Executive Committee (FPF) to find out. Guidelines for action By the Liquidity Management Subcommittee Chaired by the Permanent Secretary of the Ministry of Finance, the committee is considering jointly finding ways to prevent and solve problems. By the burden of the fund Take care of both the price of cooking gas At a price not exceeding 423 baht/drum size 15 kg. Caring for the gasoline group and take care of diesel not exceeding 30 baht per liter Meanwhile, world market prices are high because they have bee n affected by unrest in many areas, both the Middle East and Russia-Ukraine This causes more than 200 million baht of money to flow out of the fund per day, or approximately 7 billion baht/month. Most of it is taking care of diesel, which has a high usage of about 68-70 million liters/day. The fund's position as of January 28, 2024 is negative 84,349 million baht, with a loan burden of 110 billion baht (75 billion has been withdrawn to enhance liquidity. baht) in the loan section Currently paying only interest of approximately 150 million baht/month. and will begin to gradually pay off the principal in November 2024. Mr. Wisak said Overview if not prepared in advance The fund will have liquidity problems. Therefore, it was presented to the policy department on how to lay out the guidelines. Especially taking care of diesel fuel. which is the main oil that people use for transportation Agriculture and others, according to the resolution on December 28, 2023, there was a resolution to approve the use of the me chanism The Fuel Fund helps subsidize the retail price of diesel at 30 baht/liter for 3 months from 1 Jan. - 31 Mar. 2024, which is in accordance with the Cabinet resolution of 19 Dec. 2023, which is to continuously freeze the cost of living for the people. After the measure to reduce the excise tax on diesel fuel to 2.50 baht, which ended on 31 December 2023, and there was a new round of diesel tax reduction of just 1 baht per liter, effective from 20 Jan. - 19 Apr. 2024. Mr. Prasert Sinsukprasert Permanent Secretary of the Ministry of Energy said that oil taxes and the Oil Fund It's like a left-right bag. To take care of people's living expenses As for diesel, at the moment the Fund has to subsidize it by almost 5 baht/liter, but the tax is only reduced by 1 baht/liter. Therefore, it is in the process of discussion with the Ministry of Finance. How to continue taking care of each other In the past There will be guidelines to take care of: 1. Tax mechanism. If the price criteria of 30 baht is to continue to be used, there may be an additional tax reduction of approximately 2 baht/liter. 2 If the tax is not reduced, while the fund will have liquidity problems. Guidelines for reviewing gradually moving the price of diesel from 30 baht to a higher maintenance level, such as 32 baht/liter, will it be implemented or not? We will hasten to summarize the guidelines and present them to Mr. Peeraphan Saleerathaviphak, Deputy Prime Minister and Minister of Energy, for further consideration. In the past, Mr. Peeraphan Always emphasized on taking care of people's living expenses Source: Thai News Agency