Bangkok: "Ath Pisalvanich" has proposed that the government reduce the excise tax on fuel by 5 baht per liter to alleviate the financial strain on the public.

According to Thai News Agency, diesel fuel currently constitutes 55% of Thailand's total energy consumption. The recent price of diesel has risen to approximately 30.44 baht per liter, an increase from 29.94 baht per liter before the conflict on February 28, 2026. Without subsidies from the Oil Fund, the actual diesel price could surpass 50 baht per liter due to compensation costs exceeding 20 baht.

The government is attempting to maintain diesel prices below 33 baht per liter while paying close attention to the global oil price trends, which are expected to hit $120 per barrel. Such an increase could result in a deficit for the oil fund and prompt further borrowing, potentially affecting public debt in the future.

Assoc. Prof. Dr. Ath highlighted that Thailand's oil pricing structure is composed of 60% from the refinery gate and 40% from taxes and funds. He suggested a reduction in the excise tax by at least 5 baht per liter to ease the public's financial burden.

In comparison, Indonesia manages its fuel pricing differently by setting two price levels: approximately 35 baht per liter for the transportation sector and around 25 baht per liter for the general public, with the government providing direct subsidies. Unlike Thailand, Indonesia employs a fuel fund and uses a higher proportion of biodiesel, around B40-B50, whereas Thailand remains at B7. This comparison underscores the necessity for Thailand to revamp its energy and oil pricing system to enhance competitiveness and reduce the long-term financial burden on the public.