BANGKOK, Thailand – Thai motorists are not reaching deeper into their wallets for now, even as the government slashed fuel subsidies and hiked the petrol contribution. Retail pump prices stayed unchanged on Thursday, according to data from major filling station chains. The Oil Fuel Fund cut subsidy rates for diesel and gasohol on Wednesday and raised the levy for regular petrol.
The Oil Fuel Fund executive committee revised the rates paid into and out of the fund. The new rules took effect on Wednesday, July 29.
Oil fund turns the subsidy screw
The committee said the adjustments reflect current energy price conditions. The hardest hit was B7 diesel: the subsidy was cut by 0.86 baht per litre to 6.35 baht. The contribution for pure petrol rose by 0.56 baht to 5.32 baht per litre.
Global oil price brings relief and a fresh rise
Behind the scenes, a temporary recovery played out on world markets. After crude oil prices had rebounded sharply, they had previously fallen steeply. The reason: the US and Iran went three consecutive days without new military confrontations.
West Texas Intermediate slipped below $83 per barrel, Brent fell to $88.36. Quotes then climbed again. WTI closed on Wednesday at $84.46. Brent ended the session at $90.74 per barrel.
Each litre hit differently
Besides B7 diesel, other grades also saw notable cuts. Support for B20 diesel dropped by 0.75 baht to 10.94 baht per litre.
For gasohol blends, the subsidy for E20 fell by 0.45 baht to 5.56 baht. Gasohol 95 and 91 each lost 0.50 baht. E85 was reduced by 0.14 baht.
Here is what a litre costs in Bangkok
Stations held their price tags steady despite the changed subsidy structure. A litre of pure petrol stayed at 45.68 baht. Gasohol 95 remained at 36.69 baht, Gasohol 91 at 36.32 baht.
Premium diesel showed stable prices. PTT Oil and Retail Business Plc (OR) kept Super Power Diesel at 54.25 baht per litre. Normal diesel cost an unchanged 36.69 baht. B20 diesel stood at 31.69 baht.
Pump prices hold steady for now
The revised rates caused no immediate change to retail pump prices. Major operators such as PTT OR and Bangchak announce their pricing structures independently. Whether and when the subsidy cuts will be passed on to motorists remains to be seen. Fluctuating crude oil prices, however, make a medium-term adjustment of pump prices not unlikely.