Thai diesel prices rise another 3.50 baht

Pump price reaches B44.24 a litre, petrol prices up B1.20, as oil fund trims subsidies

Diesel prices will rise another 3.50 baht a litre to 44.24 baht — 48% higher than a month ago — at service stations across Thailand on Thursday morning.

PTT and Bangchak subsequently announced that prices for all grades of petrol would be increased by 1.20 baht per litre, also from 5am Thursday. Other fuel retailers were expected to follow their lead.

The diesel increase was announced late Wednesday after the Oil Fuel Fund committee reduced the subsidy for the fuel from 22.89 baht to 17.78 baht per litre.

Diesel now costs 14.30 baht per litre more than it did on Feb 28, the day Israel and the United States started bombing Iran, setting off a regional war that has caused major disruptions to energy supplies worldwide.

The pump price of B20 biodiesel was also increased by 3.50 baht, to 39.24 baht per litre after the subsidy was cut to 20.12 baht.

Reports were circulating online earlier of increases of 3.00 baht a litre or more for all fuel types, but the Ministry of Energy dismissed them as fake news.

The Oil Fuel Fund, meanwhile, is preparing to seek bank loans to stabilise its finances, having run up a deficit of 42 billion baht subsidising fuel prices.

The fund is reportedly seeking to have the Ministry of Finance guarantee borrowing of up to 150 billion baht.

Cars queue at a PTT service station on Ratchaphruek Road in Bangkok on Wednesday night. (Photo: Nannalin Tiengtae)