Prices of petrol and diesel will today fall by two baht and one baht a litre, respectively, with the price of cooking gas for household use still unchanged.
The National Energy Policy Council (NEPC), chaired by Prime Minister Prayut Chan-o-cha, yesterday approved the cut in diesel and petrol prices, in line with falling global oil prices.
The meeting also approved reductions in contributions to the state Oil Fund for all types of petrol and gasohol by one baht a litre and for E85 and diesel by 30 satang a litre, effective today.
However, Gen Prayut said the government still believed it was necessary to retain the Oil Fund to prevent any adverse effect when oil prices surged, as it could help Thai consumers to pay less than the global market price.
As of yesterday, the Oil Fund had 12.5 billion baht, running a surplus of 183 million a day compared with being 10 billion in the red on May 22, the day of the military coup.
Energy Minister Narongchai Akrasanee said the government planned to ask the cabinet for approval to adjust excise tax levied on diesel and petrol in a similar range of 2.50 to 2.85 baht a litre.
Excise tax is currently four to five baht a litre for petrol and 75 satang for diesel.
The NEPC also approved a framework for restructuring energy prices that calls for prices to reflect actual costs, identical excise tax rates for fuel used in the transport sector and a reduction of cross-subsidies.
Marketing costs of diesel and petrol traders should be evened out to an appropriate and fair rate, while the Oil Fund will remain in place to stabilise oil prices and support development of alternative energy.
The NEPC also approved in principle the 2015 power development plan. Natural gas used in power generation should drop to 30-40% from 58%, with use of coal to increase to 20-25% from 19% and hydropower to 15-20% from 10%. Renewable energy will make up 15-20% from 8%.