Democrats Push for Diesel Tax Cut to Lower Transport Costs
Democrats argue the government should cut excise tax on diesel B7 instead of just E20 and B20, citing its massive daily consumption of 62 million liters and critical role in transport and manufacturing costs.
On September 22, Democrat Party energy economics team leader Trirut Sirijantarophot responded to Deputy Prime Minister and Finance Minister Ekniti Nitithanprayut's announcement that the government is considering reducing excise taxes on E20 and B20 fuels. Trirut thanked the Deputy Prime Minister for listening to the party's proposals, noting that fuel tax cuts are a key measure to address oil prices, product costs, and living expenses by reducing the energy cost structure that drives inflation.
However, Trirut argued that cutting taxes only on E20 and B20 may not fully address the public's cost-of-living crisis. Current consumption shows B20 at approximately 3 million liters per day and E20 at roughly 6.5 million liters daily, while diesel B7—the critical fuel for transport, agriculture, manufacturing, and commercial vehicles—is consumed at about 62 million liters per day. The party questioned why the government chose to consider only E20 and B20 tax reductions and whether this decision relates to upcoming legal restrictions on fuel fund compensation for these two fuel types.
The Democrats argue that if the government aims to reduce transport costs, ease living expenses, and lower pressure on product prices, cutting excise tax on diesel B7 would have far broader economic and social impact. Responding to government claims that diesel tax cuts would only benefit certain groups, the party contends this argument is flawed because diesel is the primary cost driver for transportation and manufacturing. Lower energy costs should be monitored by the Commerce Ministry to prevent businesses from maintaining prices at previous levels. The party stressed that sustainable solutions to living costs require reducing upstream costs rather than using budgets or loans to compensate citizens later.
"Most people's cost-of-living problems are directly tied to transport costs and daily product prices, with diesel B7 being a major factor," Trirut said. "If the government cuts fuel taxes, it should start with the fuel consumed in the highest volumes and affecting the broadest economic base." He concluded: "Once the government accepts that reducing fuel taxes is the right approach, the question remains: why not start with diesel B7, which consumes approximately 62 million liters daily and is the primary fuel determining transport, production, and product prices across the entire nation?"
