Bangkok: Oil prices remain unchanged after the government squeezed revenue by increasing diesel and gasoline taxes by 1 baht/liter today. The Oil Fund reduced collections so as not to affect the public, cutting the fund’s revenue by 50 million baht per day.
According to Thai News Agency, the Cabinet agreed to increase the tax on both diesel and gasoline by 1 baht per liter, effective today, to increase government income. Currently, gasoline consumption is around 33 million liters per day, and diesel is 69 million liters per day. To prevent the impact on oil prices for the public, today’s pump prices have not increased. The meeting of the Oil Fund Management Committee (OFMC), chaired by Mr. Pirapan Salirathavibhaga, Deputy Prime Minister and Minister of Energy, agreed to adjust the rate of contributions to the Oil Fund for all types at a rate that will prevent oil prices from increasing due to the tax hike, to help people’s cost of living during the ongoing economic recovery. This adjustment will reduce the Oil Fund’s revenue in the oil category by approximately 49.57 million baht per day, from about 393.97 million baht per day to around 344.40 million baht per day. As of May 4, 2025, the Oil Fund’s status was in deficit at 47,779 million baht, with the oil accou
nt in deficit at 2,540 million baht and the LPG account at 45,239 million baht.
Mr. Pornchai Chirakulpaisan, Director of the Policy and Planning Office, Oil Fund Office, stated that Mr. Phiraphan has tasked the analysis and assessment of the impacts. It was found that the Oil Fund can adjust the rate to support the increase in excise tax rates on oil products, such as gasoline and diesel, until the end of fiscal year 2025. However, if a crisis in oil prices occurs affecting the retail price of oil in the country, it will be proposed to the Ministry of Finance, through the Excise Department, to consider reducing the oil tax to maintain the stability of the retail price of oil in the country.
The NBTC continues to adhere to its operations under the framework of the Oil Fund Act of 2019 to maintain the stability of domestic oil prices, reaffirming its principles of ‘openness, transparency, and accountability.’
The increase in oil tax by 1 baht per liter is in accordance with the Royal Gazette announcement, stating that the Ministerial Regulation Determining Excise Tax Rates (No. 42) B.E. 2568, by exercising the authority under Section 5, paragraph one of the Excise Tax Act B.E. 2560, has been issued by the Minister of Finance. The announcement highlights that the current global crude oil price tends to decrease, making it appropriate to raise the excise tax rate for oil products and oil products, such as gasoline and diesel, to increase state tax revenue, maintain the country’s economic security, and fiscal stability. Therefore, it is necessary to issue this Ministerial Regulation.