Government Rejects Opposition Plan to Cut Fuel Prices
The Thai government rejected an opposition proposal to use 50 billion baht in surplus funds to cut diesel prices, arguing that direct cash transfers to low-income earners are more effective than fuel subsidies that primarily benefit vehicle
On September 20, government spokeswoman Lalida Persivivatana responded to a proposal by opposition politician Treerat Sirijantaroephas to use leftover funds from the Thai Help Thai Plus program, approximately 50 billion baht, to reduce diesel prices by 7 baht per liter for two months, coupled with an excise tax cut.
Persivivatana said the proposal warrants consideration but must be evaluated holistically, examining budget objectives, beneficiary groups, and fiscal impact rather than focusing solely on fuel users. She stressed that the Thai Help Thai Plus program is not a fuel subsidy fund but a comprehensive relief measure approved by cabinet on May 19, 2026, with a total budget ceiling of 175,718.66 billion baht within a 200 billion baht borrowing framework. The program targets low-income earners and welfare cardholders, aiming to ease living costs and preserve purchasing power while supporting small businesses.
Under the current measures, approximately 13.18 million welfare cardholders receive an additional 700 baht monthly during June to September 2026, bringing total monthly support to 1,000 baht. The 60/40 cost-sharing program covers food, beverages, designated goods and services, and public transport, benefiting citizens without personal vehicles.
Persivivatana questioned how people without cars, the elderly, and low-income earners would benefit directly from diesel subsidies, noting that fuel price cuts proportionally reward high-volume consumers while excluding non-drivers. She acknowledged that energy measures can support the economy but emphasized that cost reductions may not fully reach consumers, whereas direct cash transfers and subsidy programs ensure immediate assistance to eligible beneficiaries.
Regarding the claimed 50 billion baht surplus, Persivivatana cautioned that the accounting status must be clarified first—distinguishing between unallocated borrowing capacity, approved but undisbursed funds, committed funds, and genuinely available surpluses that can be repurposed, as each carries different legal implications. She stressed that an apparent surplus does not constitute freely available cash that the government can immediately reallocate without accounting and legal foundations.
The government remains open to energy subsidy proposals from all parties but insists that policy design must serve all population groups—vehicle users, public transport passengers, seniors, low-income earners, small traders, and those without personal vehicles—while weighing fiscal efficiency and broader financial health.
