BANGKOK, THAILAND – Thailand’s Finance Ministry prepared to allocate 1.8 billion baht per month to support vulnerable groups as rising oil prices strained key sectors.
Government moves on oil price crisis
On 28 March, the Finance Minister presented a package of measures to address the ongoing oil price crisis. The plan aimed to deliver targeted assistance to the sectors most severely affected by higher fuel costs.
The transport sector, including truck operators and public transport services, was placed at the centre of the response. The government sought to ease the financial burden on companies whose operating costs had sharply increased.
Direct support for transport companies
Support for transport companies was to be provided through a digital payment system to ensure funds reached the intended recipients directly. Authorities planned to use GPS technology to verify actual fuel consumption before disbursing assistance.
Under the scheme, truck operators were to receive compensation of 6 baht per litre, while public transport services were expected to be supported with about 4 baht per litre. These rates were designed to offset part of the recent price surge.
Relief for motorcycle taxi drivers
In addition to larger operators, the government also targeted relief at motorcycle taxi drivers. More than 100,000 registered drivers were set to receive 300 baht per month.
These payments were likewise to be processed via the digital system, making use of an existing database that already contained personal identification numbers. This was intended to speed up verification and reduce leakage.
Energy tax cuts under consideration
The Finance Ministry worked on a draft proposal to reduce the energy tax on oil products. This process was carried out in coordination with the legal commission to determine the precise tax rates to be adjusted.
The government stressed that all of these measures were only temporary. They were to remain in force solely for the duration of the current crisis.
Progress on social assistance programs
On 30 March, a meeting of the social assistance committee was scheduled to discuss an increase in funding for social welfare programs. The Finance Minister was due to chair the session.
The government had already made a basic policy decision to expand support. The next steps included obtaining approval from the Election Commission so that the funds could be released as quickly as possible.