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Pattaya Daily News

07 March 2008 :: 07:03:57 am 3988

Diesel Subsidy Won’t Load Oil Fund With Debt

Energy Minister Poonpirom Liptapanlop on Thursday reemphasised the ministry‘s proposed plan to ease the diesel price hike through a subsidy that he said would not saddle the State Oil Fund with debt burdens.
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Bangkok, the 7th of March 2008 [TNA]: Lt.Gen. Poonpirom said the surge in the cost of crude in the United States market to a record high of almost US$105 per barrel is considered a crisis affecting the volatility of prices in general.

The only way to cope with the situation is to seek cooperation from the public in campaigns for saving energy and educating consumers to use alternative energy sources.

The ministry had accelerated its promotion of the campaigns on a continual basis and at the same time prepared a short-term plan to reduce the impact of the diesel price hike to go before the National Energy Committee on March 12.

The plan would be implemented until July this year because it is believed oil prices would drop after that.

Never, she said, had had she hinted at fixing diesel prices at no more than 30 baht per litre, as has been incorrectly reported elsewhere.

Lt.Gen. Poonpirom reiterated the plan would not incur the Oil Fund with debt because the money used to subsidise the diesel price comes from oil surcharge collected from the sale of premium and regular gasoline, and premium gasoline.

Each month, around Bt900 million of oil surcharge goes to the Oil Fund. Of this, around Bt500-600 million will be brought to subsidise the price of diesel fuel. (TNA)

Reporter : Methawee   Photo : Internet   Category : Business News

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