Finance Minister may scrap fuel ceiling limit

[Spitfire]

Korn may scrap ceiling on retail diesel price

Finance Minister Korn Chatikavanij hinted at the possible scrapping of the ceiling on retail diesel price before April as oil prices continue their upward trend, while oil retailers urged the government to resort to other measures in addition to subsidies from the Oil Fund.
Korn admitted that removing the ceiling could be politically unpopular but said economic policy must be based on facts.
"We need to accept the impact if the Bt30per litre ceiling is lifted, due to the limited capacity of the Oil Fund. If the price is higher than expected, we need to accept it," he said.

Source - The Nation

Comment - Well, playing with fire, even if subsidisation doesn't work in the long run. Remember when diesel hit 45 baht a litre a couple years ago? There were almost riots and it's a sensitive issue here, this is. Perhaps a 'halfway-house' is being formulated. This will not be popular, even if practicle and realistic.

[Spitfire]

Looks like they are getting everyone ready for fuel price increases, present prices might not last till the end of April as initially proposed as the 'Fuel subsidy fund' is running dry.......lots of unhappy folks next month though, I reckon. Songkran might be a good distraction for the government initiate it, they will probably do it then.

PM indicates diesel price subsidy may not last until end of April

Prime Minister Abhisit Vejjajiva Sunday hinted that the subsidy of the diesel retail price may not last until the end of April as initially planned.
Speaking during his weekly TV program, Abhisit said the Oil Fund was running out so the energy policy committee would convene a meeting Monday to assess the situation before the government would make a decision on the subsidy.
He said the oil fund has only some Bt7 billion left when it is deducted by the subsidy for the cooking gas until the end of June.

Source - The Nation

Edit - Seems they are trying to keep the diesel price steady at 30 baht a litre by extending the subsidy, maybe it's 95/91 that's going up.

http://www.nationmultimedia.com/home/Su ... 50088.html

[fft100]

The subsidy is going to cost over 9bn in the next 3 weeks, at which point they run out of money. the price without the subsidy would be 35 baht a litre.

I use about 200 litres a month. Is it possible for me to forward buy 2000 litres, thus saving me 10,000 baht over the next 10 months ? anyone any ideas ?

[E-Dork]

I use about 200 litres a month. Is it possible for me to forward buy 2000 litres, thus saving me 10,000 baht over the next 10 months ? anyone any ideas ?

[PaulHamon]

I use about 200 litres a month. Is it possible for me to forward buy 2000 litres, thus saving me 10,000 baht over the next 10 months ? anyone any ideas ?[/quote]

Just get a bicycle.

[Takiap]

I'm no politician, but I think think this should have been scrapped ages ago, at least for privately owned vehicles. Why should the entire country pay part of the fuel bill for every Tom, Dick and Harry to drive around in gas thirsty machines. I mean, do you really need a 3Ltr to go for a beer, or to go to the market? Sure you can own one, but then pay for your own fuel

No offense, but 200 liters of fuel would last me an entire year with a modest Honda Wave. I know, not everyone want to drive around using anything less than what they currently have, but then you should also be willing to foot your own bill.

[Johan]

I use 1 000 liters of 91 per month and 200 liters of 95, i hope prices are not going up.

[PeteC]

The largest vehicle market here is 1 ton diesel pick up trucks and the buyers are primarily up-country rural folks engaged in farming or some occupation where a pick up is needed to make a living. Some of these people save for years to buy a truck, and once bought that's it for life. The subsidy is 100% directed towards these folks IMO. Pete