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Thai oil companies told to boost reserves as Russia-Ukraine war continues
The Energy Ministry said on Friday that oil firms in Thailand have been instructed to boost their reserve capacity to 70 days from 60 days to ensure there is enough fuel for domestic use amid the global crisis sparked by the Russia-Ukraine war.
Maintaining stability in fuel supply is very important in the current situation. We must ensure that Thailand has enough fuel for domestic use, while the rising price of fuel will be treated as a separate issue,” Energy Minister Supattanapong Punmeechaow said.
He made the comment after attending a meeting with Finance Minister Arkhom Termpittayapaisith, Bank of Thailand governor Sethaput Suthiwartnarueput and Securities and Exchange Commission (SEC) secretary-general Ruenvadee Sawanmongkol to discuss how the global oil crisis will impact the Thai economy.
“The ministry will continue fixing the price of diesel at 30 baht per litre to help the transport sector,” he said. “Currently the Oil Fund, which subsidises the price of fuel, has a borrowing limit of 30 billion baht. If the global oil crisis persists and fuel subsidies continue being required, we will consider raising the limit to 40 billion baht or more. However, the final decision is in the hands of the Cabinet,” Supattanapong said.
He added that earlier this week, the Cabinet had agreed to waive excise tax for B0 diesel (diesel with less than 0.005 per cent of sulphur) and oil used by the Electricity Generating Authority of Thailand to generate power until September 15.
“This tax waiver should help reduce the cost of electricity generation,” he said. “The ministry is also looking into buying cheaper electricity from different sources to prevent people’s utility bills from rising too high.”
Published : March 11, 2022
By : THE NATION