“Oil Fund” can’t hold back, submits “Treasury” to reduce excise tax

However, Thailand, although the proportion of oil consumption is not much. but with factors that must be based on the same oil price as the world market As a result, the price of diesel fuel in Thailand that Thai people use the most has exceeded 30 baht per liter for a long time. Which the government uses the method of using the fuel fund to support the diesel price not more than 30 baht per liter, now subsidized at 2.49 baht per liter

and moreover Gas Price (LPG) also skyrocketed made by the Ministry of Energy Energy Policy Executive Committee (MPG) havingMr. Supattanapong Panmeechaow, Deputy Prime Minister and Minister of Energy presided over the approval of the oil fund to support the price of LPG in the household sector at 318 baht per 15 kg tank by extending the period until the end of March 2022

Resulting in the latest fuel fund status as of January 16, 2022, the capital fund is negative 8,782 million baht, divided into oil accounts at 15,340 million baht and LPG accounts at negative 24,122 million baht. There is money outflow from diesel price compensation of 4,600 million baht per month and compensation for LPG totaling 1,900 baht per month, total compensation of approximately 6,500 million baht per month.

so Energy Policy and Planning Office (EPPO) Must prepare a plan to reduce the excise tax on oil to support the fuel crisis already which the Oil Fund must maintain the liquidity of the Fund and assess the policy including a countermeasure to avoid affecting both the fund and the people

Mr. Wattanapong Kurovat, Director of the Energy Policy and Planning Office (EPPO) said the EPPO has proposed a plan to reduce the excise tax on oil to Mr. Kulit Sombatsiri, Permanent Secretary of the Ministry of Energy. to discuss with Mr. Supattanapong is completed Because the price of crude oil in the world market has risen to a level close to $87.50 that the BOI estimated is a level that should ask the Ministry of Finance to reduce oil excise taxes. to reduce the impact of the oil fund’s outflow

“With the rising oil price situation The reduction of oil tax is therefore considered under the condition of the Organization that if the price of Dubai crude oil exceeds $87.50 per barrel. which now the price is very close therefore need to urgently discuss with the Ministry of Finance to cope which previously The BOT had previously proposed to reduce the gas tax at 1-2 baht per liter from the current collection at 5.99 baht per liter, but this was not approved by the Ministry of Finance.”

Mr. Wisak Wattanasap, Director of the Office of the Fuel Fund (NESDB) said the Oil Fund Still following the same loan procedure because it passedCabinet (Cabinet) finished If the Ministry of Energy discusses with the Ministry of Finance to request a reduction in oil excise tax asap It will definitely affect the status of the Oil Fund because now the world oil price factor has skyrocketed. Due to various events abroad, many speculate that there may be an oil crisis.

However, on the policy side, it must be seen that if the world oil price will rise past the ceiling that has been set may have to apply for a reduction in fuel tax Because if the world oil price increases, the liquidity of the fund will affect. The amount of money flows out faster than before and according to the original framework will be able to support it or not. therefore have to look at many dimensions

“Each month, money flows out of the fund about 6,000 million baht and if energy prices continue to rise, it will affect the fund. Although there is a cash flow of more than 20 billion baht and even if a loan of 20 billion baht came to help, it will be used to support the oil price for a few months. If the tax is reduced, it may help reduce the amount of cash outflows. As far as I know, many parties sympathize with the Fund. which is the main tool to help, but it has limitations”

In addition, although previously the ministry had predicted the arrival of summer in March 2022. The amount of power consumption may go down. Energy prices may go down as well, butforeign political situation As a result, the world oil price is still volatile, it still affects the oil price in Thailand anyway. because it is based on the world market price Although Thailand is a sector that is not many.

For the progress of the first loan of 20,000 million baht, there areKrung Thai Bank, Government Savings Bank and Kasikorn Bank Coordinate with the Treasury Office to request additional information for analysis and decision making. And there are still many banks that have come to look at the information in the oil fund’s website. Confirm payment within 3 years Banks are confident Will definitely submit a loan offer with the Oil Fund. The fund has a deadline for submission until January 31, 2022.