Bangkok: The Ministry of Finance is preparing to reduce the diesel tax by 1 baht per liter, pending approval from the Election Commission. This initiative is part of broader efforts to mitigate the rising cost of living linked to the ongoing Middle East conflict. Minister Anutin Charnvirakul has also commissioned a study on importing oil to Laos and Myanmar as an alternative to using oil from Thai refineries.
According to Thai News Agency, Deputy Prime Minister and Minister of Transport, Mr. Pipat Ratchakitprakarn, in his role as Director of the Center for Monitoring and Managing the Conflict in the Middle East, stated that a special Cabinet meeting resolved to reduce the excise tax by 1 baht. However, the implementation awaits approval from the Election Commission. The Excise Department is drafting an announcement to reduce the diesel excise tax, which will be sent to the Council of State and the Election Commission for approval. If sanctioned, the measure will be enacted immediately. Otherwise, the decision will be deferred to the next government.
Mr. Lawaron Saengsanit, Permanent Secretary of the Ministry of Finance, highlighted that the tax reduction will specifically target diesel fuel. Currently, the excise tax on diesel is collected at a rate of 5-6 baht per liter. This reduction is intended as a temporary measure, with future continuance dependent on the decisions of the incoming government.
Mr. Danucha Pichayanant, Secretary-General of the National Economic and Social Development Council, reported that Thailand exported an average of 4.6 million liters of oil per day to Laos and 227,000 liters per day to Myanmar from March 1st to 25th. Prime Minister Anutin Charnvirakul has proposed reserving domestically refined oil for Thailand's use while exporting to neighboring countries. This move aims to bolster Thailand's oil energy security by at least 5 million liters, with a feasibility study currently in progress.
In response to the surge in crude oil prices due to the Middle East conflict and the Strait of Hormuz closure, several countries have adopted tax measures to support their populations. The Philippines declared an "Energy Emergency" to reduce fuel taxes; Japan decreased additional taxes on gasoline and diesel; India's central government cut import taxes on these fuels; South Korea adjusted its fuel taxes, lowering diesel by 25% and gasoline by 15%; Vietnam eliminated taxes on three fuel types, reducing domestic gasoline prices by approximately 19%; and the United Kingdom reduced taxes on unleaded gasoline and diesel to aid motorists.