BANGKOK (Bernama): Thailand has defended a 6-baht-per-litre (RM0.73) fuel price increase, citing surging global oil prices and mounting pressure on the state subsidy fund amid tensions in West Asia.
Director of Policy and Planning at the Oil Fuel Fund Office, Pornchai Jirakulpaisan, said global oil prices have risen significantly, from around US$198 on March 17 to as high as US$242 on March 23, driven by tensions in West Asia.
He said Thailand has also been affected, with the fund facing worsening liquidity after more than 35 billion baht had been utilised, and daily outflows now reaching about 2 billion baht.
"For these reasons, the Oil Fuel Fund Management Committee considered multiple factors before concluding that it was necessary to reduce subsidies for both diesel and petrol.
This led to a 6-baht-per-litre increase in retail fuel prices across all types,” he told reporters at the Centre for Managing and Monitoring the Situation of the Conflict in the Middle East (CMCMME) on Thursday.
He said the sharp adjustment, though shocking to the public, was not intended to enable profiteering.
Pornchai added that surging global oil prices have increased the fund’s expenditure and strained its liquidity, making the significant adjustment necessary to maintain stability.
On Wednesday, the Oil Fuel Fund Office announced a sharp overnight fuel price adjustment of 6 baht per litre (RM0.73), which took effect at 5am on Thursday (March 26) across all fuel types.
A check at a Bangchak Corporation petrol station on Thursday showed Gasohol 95 priced at 41.05 baht (RM5.00) per litre, Gasohol 91 at 40.68 baht (RM4.95), and Diesel B7 at 38.94 baht (RM4.74).
Addressing criticism over the late-night announcement, which shocked the public and fuelled speculation about hoarding, Pornchai said Thailand references oil prices from the Singapore market, which closes at around 7pm.
"Price calculations, including currency conversion into baht, are typically finalised around 8pm, followed by a meeting at 9pm, that often runs late as multiple factors, including regional comparisons are considered,” he added.
-- BERNAMA
