Unlock the “oil fund” to fight the crisis, the NEPC brewing to expand the loan ceiling

Russo-Ukraine war situationAs a result, the price of crude oil in the world market rose. The price of Brent crude oil soared to nearly 130 dollars a barrel. Its highest since 2008, when the US and European allies aimed to ban Russian oil imports. And postponing the opportunity to export Iranian crude to the world market, causing concerns about tight oil supply

While yesterday (March 7) at 14.23 Thailand time Brent crude futures rose $10.88, or 9.2 percent, to $128.99 a barrel. The U.S. WTI crude futures rose $9.80, or 8.5 percent, to $125.48 a barrel.

The first few minutes of trading yesterday Both BRAND and WTI crude rose more than $10 a barrel. To their highest level since July 2008, the Brent was $139.13 and the WTI was $130.50.

While domestic retail prices rose again today (March 8), which announced all kinds of 60 satang, causing diesel prices to rise to 30.54 baht, exceeding the ceiling that the government freezes at 30 baht, but at 6:30 p.m. .Announced again to maintain diesel price at 29.94 baht

Such a situation makes General Prayut Chan-o-cha, Prime Minister give orderMinistry of EnergyandMinistry of Financefind measures to take care of the people including tomorrow (March 9) Prime Minister will chair the meetingNational Energy Policy Administration Board (NEPC) to review the countermeasuresoil crisis

Sources from the Ministry of Energy said it would propose to the NEPC to amend the Fuel Fund Act, B.E. 2019, Chapter 4, Section 26, which states that the fund must have sufficient amount for efficient fund management which, when combined with the loan under paragraph two, shall not exceed the amount of forty billion baht.

By offering to cut some words that “Which, when combined with the loan under paragraph two, must not exceed forty billion baht.” is issued to help fund more flexible operations. and may allow the Fund to be able to borrow more money to maintain the stability of the domestic retail oil price as appropriate for each situation and necessity.

go ahead and use the oil fund

news source said Ministry of EnergyThe fuel fund mechanism is still used to freeze energy prices. Especially diesel, which subsidizes 5.08 baht per liter, but the higher energy price situation has resulted in 13 billion baht per month in the oil and LPG accounts, while having 5 billion baht in flows into the fund per month. baht and the current fund status is negative 21,838 million baht.

At present, the fund has been approved for a loan ceiling from the Cabinet of 30 billion baht and has already been approved for a loan of 20,000 million baht, including in March 2022 will offer to approve another 10,000 million baht loan while the cash flow of The fund is at 20,000 million baht, which is a worrying level and has to urgently add liquidity to the fund.

Currently, the Oil Fund has changed its legal status to a public organization and is in the process of giving.Office of the Auditor General of Thailand check the account and if NST.The balance sheet has been approved and can then be borrowed. which is expected to be recovered in March

Continue to hold diesel for 2 months

Sources from the Government House revealed that the Cabinet meeting today (March 8) will consider the Ministry of Energy’s proposal to reduce the electricity bill for the general public. to alleviate people’s suffering from rising oil prices at this time

However, in solving the energy price crisis, the government will proceed with caution. to use the budget as efficiently as possible It is hoped that after the winter in Europe in April and the beginning of summer in May, the amount of energy consumption in Europe will decrease. This will reduce the pressure on energy prices to some extent. Even though the warRussian-Ukrainian It’s not over yet

For the policy to freeze the price of diesel fuel from the diesel tax reduction measure by 3 baht per liter of the Ministry of Finance for 3 months, together with the use of subsidies from the Oil Fund Which has a loan amount of 30 billion baht will allow the government to freeze the retail price of diesel to be at a level of not more than 30 baht per liter for another 2 months, which is suitable for the period of the European winter and the pressure on energy prices has decreased.

Oil rises, requiring additional subsidies and tax cuts

Sources from the Ministry of Finance said the fighting situationRussian-Ukrainian that affects the higher oil prices The Treasury estimates that every $10 hike will have a 0.01% drop in GDP. If global oil prices continue to climb to $120 a barrel, diesel retail prices will jump to nearly 40 baht a liter.

However, if the government wants to freeze the retail pricedieselshould not be more than 30 baht per liter, must put money in the oil fund to subsidize more prices Including the need to reduce the excise tax on diesel fuel further from the current reduced from the normal rate by half

And another alternative approach is to raise the ceiling of the retail diesel price to be higher than 30 baht per liter by using the oil fund and using measures.oil tax reductionto keep the retail price at an appropriate level and in line with the situation where the world crude oil price is rising

to not reduce the gasoline tax

Mr. Santi Prompat, Deputy Minister of Finance said that the energy price problem is a short-term problem It’s too soon for the Ministry of Finance to talk about the oil tax cut again. The oil fund is also responsible for keeping diesel from raising the price.

Mr. Santi Answering the question of reducing the gasoline tax It’s too soon to talk about it. by factors that affect oil prices In particular, the conflict between Russia and Ukraine is believed to not expand due toUnited States, Europe and China will help such problems not expand. Therefore, people are asked to help save energy consumption, such as using buses instead of personal cars. which will be part of reducing the cost of living