The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search

Oil price hike and baht depreciation worry Thai government

Oil price hike and baht depreciation worry Thai government

BANGKOK: The Federation of Thai Industries (FTI) expressed concern about the increasing oil prices and the depreciation of the Thai currency, while asking the government to carefully manage these worrying issues as they will put tremendous pressure on Thailand’s slow economic growth dampened by the COVID-19 pandemic.

By National News Bureau of Thailand

Thursday 14 October 2021, 09:30AM

Photo: NNT

Photo: NNT

Chairman of the FTI Supant Mongkolsuthree explained that higher oil prices will increase production cost and prices of goods, while a sluggish economy will partly affect the baht’s value, reports state news agency NNT.

The Energy Policy Administration Committee resolved earlier this month to cap the diesel price at 30 baht per litre starting on Monday (Oct 11) until the end of this month as part of the effort to ease the impact of increasing oil prices in the global market.

Meanwhile, the government has acted to cushion fuel prices and to reduce the diesel price by one baht, easing the strain on people’s cost of living amid continually rising global oil prices.

The Ministry of Energy attributes the rising global oil prices to increased demand, NNT noted in a separate report.

Deputy Prime Minister and Minister of Energy Supattanapong Punmeechaow said the oil price in the world market has risen by US$4-5 to US$40 per barrel, while prices of natural gas and coal have also risen.

AXA Insurance PCL

Prices continued to rise despite the OPEC group having ramped up production by 400,000 barrels per day. The energy minister said this prompted the government’s move to cushion oil prices, especially the widely used Diesel B7. He noted that the government had been encouraging B7 users to switch to Diesel B10, as the latter was cheaper than B30 per litre, but there were still some issues hindering the switch.

The minister said the Oil Fund currently has a little more than B10 billion remaining, and if the amount proves insufficient then borrowings can be made. 

However, he believed the current fuel prices situation had to do with fast-changing and cold weather in several regions of the world. Oil production in the United States and Russia have thus been impacted, while in Europe the demand for fuel has caused oil prices to increase by two- to threefold.

He expected the government’s temporary reduction this month of biodiesel offerings to only B6 to quell rising diesel prices.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.


charles | 14 October 2021 - 22:16:04

there is no cap of 30baht on diesel prices  the Shell station on Patak rd Chalong is already at 36baht


Have a news tip-off? Click here


Phuket community
We can’t go back to our old ways, Phuket marine industry cautioned

Unfortunately Thai 'experts' do not care about what foreigners say- at the end of the day it...(Read More)

Phuket marks 118 new COVID cases, six more deaths

Interesting... so almost no deaths before the vaccine rollout, and after the vaccine rollout with mo...(Read More)

Three schemes set to welcome visitors

Kurt I had to accept the sugar water as that's all I could get. Second dose was AZ though and I...(Read More)

Three schemes set to welcome visitors

Please choose from: 1) Confusing, 2) A lot more confusing and 3) Slightly less confusing and subjec...(Read More)

When insurance skips a beat

S Africa? It used to be Libya which was only because of dismal emergency services and Thailand was...(Read More)

Thailand to welcome visitors from 46 countries from Nov 1

With the Delta sub-variant on the rise in UK and presumably elsewhere, Russia's use of an also ...(Read More)

Three schemes set to welcome visitors

@JohnC, agree 100% with you, But some, here chosen the expats, have to fill up the financial earning...(Read More)

Thailand Pass starts Nov 1, refunds on COE bookings allowed

Patience Captain Jack, all will be revealed on Oct 30th, doubtless a few U-turns in the meantime - m...(Read More)

Phuket local food served in domestic tourism push

Empty words 'lure, world class, upgrading, plans launched, raise standard local food service'...(Read More)

When insurance skips a beat

His claim that Thailand has the second worst traffic fatalities behind South Africa is simply not tr...(Read More)