On March 16, the Fuel Fund Management Committee of Thailand announced that to prevent the retail price of diesel from exceeding 30 baht per liter, the diesel subsidy has been increased to a maximum of 18.31 baht per liter. The committee emphasized that this measure is only a temporary arrangement.

The Fuel Fund Management Committee of Thailand stated that the recent intensified fluctuations in international oil prices have put pressure on energy costs and household living expenses. The subsidy increase aims to stabilize domestic fuel prices in the short term.

The committee pointed out that there has been a recent trend of domestic diesel retail prices potentially rising above 30 baht per liter. If prices continue to rise, it could have a significant impact on the overall economy and put pressure on national energy security.

Under the new fund collection and compensation framework, diesel fuels receive the highest subsidies, with ordinary diesel and B20 diesel subsidies set at 18.31 baht per liter. Among ethanol-based fuels, E20 receives a subsidy of 9.85 baht per liter, ethanol 95 gasoline and ethanol 91 gasoline receive a subsidy of 8.37 baht per liter, and E85 receives a subsidy of 2.28 baht per liter.

However, the Fuel Fund Management Committee of Thailand emphasized that the above intervention is a temporary measure. The government will continue to adhere to the principle that fuel prices reflect costs to avoid distorting market mechanisms and prevent cross-subsidies between different fuel categories.

As of March 15, the overall balance of the Thai Fuel Fund stood at a negative 126.05 billion baht. (Reporters: Li Yingmin, Liu Yubo)