Bangkok: The Energy Policy and Planning Office (EPPO) has announced that the price of diesel will rise to 50.54 baht per liter starting tomorrow. This decision comes as the Fuel Fund Management Committee (FFMC) resolves to reduce the subsidy for B7 diesel by 2.61 baht per liter, dropping it from 20.71 baht per liter to 18.10 baht per liter. Similarly, the subsidy for B20 diesel will be reduced by 2.61 baht per liter, moving from 22.22 baht per liter to 19.61 baht per liter.

According to Thai News Agency, this reduction in subsidy aims to decrease the daily outflow of funds from 1,708.75 million baht to 1,496.72 million baht. As a result of adjusting the subsidy rates, the retail price of B7 diesel will increase to 50.54 baht per liter, while B20 diesel will rise to 45.54 baht per liter. This change is intended to align with market conditions and maintain the liquidity stability of the fund, taking effect from April 5th onwards.

The Oil Fund Committee's decision to reduce subsidies is primarily driven by persistent volatility in global oil prices. By cutting subsidies and allowing retail prices to reflect actual costs, the committee aims to balance the Oil Fund in the long term. The reduction in subsidies is expected to decrease the Oil Fund's expenses by approximately 212.03 million baht per day, from the previous level of 1,708.75 million baht per day to about 1,496.72 million baht per day.