The reductions were announced last night after a meeting of the Oil Fuel Fund Management Committee, reports the Bangkok Post. The new retail prices are as follows:
Diesel B7: B34.94
Gasohol 95: B34.94
Gasohol 91: B34.57
Gasohol E20: B29.99.
The price cuts came after Prime Minister Anutin Charnvirakul raised the matter at yesterday’s Cabinet meeting, saying domestic retail fuel prices should be reduced as soon as possible in line with recent developments in the world market.
World oil prices last week returned to the levels not seen since before the US-Israeli war on Iran - around US$70 a barrel. The Middle East conflict and subsequent closure of the Strait of Hormuz had sent prices soaring, with a peak of $112 a barrel reached on Apr 6.
Energy Minister Akanat Promphan yesterday convened meetings of the National Energy Policy Administration Committee and the oil fund to review local pump prices.
A government spokesperson said the committees moved quickly to ensure domestic retail prices reflect lower costs and that consumers benefit without delay.
Officials also said there was no need to wait for benchmark refined fuel prices in Singapore to decline if crude oil prices had already fallen.
‘Meaningful’ reductions
Anutin said earlier that lower fuel costs would ease the cost of living and reduce business overheads nationwide.
“The public is aware that global oil prices have fallen and are now relatively stable. Therefore, domestic retail prices should also be adjusted downward,” he said.
“I simply told the energy minister… that when global prices rose, we asked the public to accept higher domestic prices. Now that global oil prices have fallen, we do not need to ask the public for anything. We should simply cut prices immediately and by a meaningful amount, rather than making gradual reductions.”
Anutin also said that Commerce Minister Suphajee Suthumpun was also closely monitoring food prices in light of easing transport and operating costs for producers.
Meanwhile, the government is continuing its low-cost Blue Flag retail programme and price-control measures for essential goods. The Thai Chuay Thai Plus (Thais Help Thais Plus) co-payment scheme, which runs until Sept 30, would also help reduce household expenditure, he said.
Responding to a question about inflation, Anutin said the government would continue pursuing a broad range of economic policies, stressing that it was focused not only on economic indicators alone but also on improving people’s quality of life.