Thailand Cuts Fuel Prices as Global Oil Drops
Thailand's Oil Fuel Fund Committee has cut retail gasoline prices by 0.50 baht per liter and regular diesel by 1 baht per liter, effective November 11. The reductions follow a drop in global oil prices due to easing U.S.-Iran tensions and better shipping conditions. While the move aims to ease living costs, the fund remains in deficit and urges the public to conserve fuel amid ongoing market volatility.
The Oil Fuel Fund Committee approved a retail price cut of 0.50 baht per liter for gasoline, excluding E85 gasohol, and 1 baht per liter for regular high-speed diesel, excluding B20 diesel, effective November 11, 2024. The move reflects a decline in global oil prices, driven by easing U.S.-Iran tensions and improved oil transport conditions. On November 10, global diesel closed at approximately $149 per barrel and gasoline at $103 per barrel, down from $162 and $111 respectively on November 6.
For diesel, the subsidy for regular high-speed diesel was reduced by 0.34 baht to 2.18 baht per liter, setting the retail price at 40.79 baht per liter. B20 diesel saw its subsidy cut by 1.12 baht to 2.93 baht per liter, keeping its retail price unchanged at 33.50 baht per liter. Premium diesel maintained a levy of 1.50 baht per liter.
In the gasoline and gasohol group, gasoline saw its levy increase by 0.29 baht to 11.17 baht per liter, resulting in a retail price of 48.83 baht per liter. Gasohol 95 and 91 each had their levy raised by 0.23 baht to 3.22 baht per liter, setting retail prices at 39.34 and 38.97 baht per liter respectively. Gasohol E20's levy rose by 0.15 baht to 2.55 baht per liter for a retail price of 31.30 baht per liter. E85 gasohol saw its subsidy reduced by 0.19 baht to 0.90 baht per liter, keeping its retail price steady at 30.63 baht per liter.
The price drop comes at a good time for the committee to lower retail fuel prices, easing the cost of living for the public while improving the Oil Fuel Fund's liquidity. Currently, the fund spends about 89 million baht daily and carries an estimated deficit of 100,082 million baht. However, given continued energy market volatility, the fund urges cooperation from all sectors to use fuel wisely and only as needed to ensure long-term energy security.
