Thailand: Govt readies B150bn loan guarantee for oil fund

The cabinet on Tuesday approved a law to guarantee up to 150 billion baht (US$4.23 billion) in loans for the state oil fund to support energy prices as the government fights inflation, according to a government source and media reports.

The measure still has to be examined by the Council of State, a government office that vets laws, the source said, before final sign off from parliament.

The Oil Fuel Fund Office was about 117 billion baht ($3.30 billion) in the red as of Sunday, as Thailand used it to support subsidies and manage oil prices in a bid to slow inflation hovering around 14-year highs in July.