On March 16, 2023, the meeting of the Oil Fund Executive Committee approved a reduction in the retail price of diesel by 0.50 baht / liter, resulting in the retail price of diesel at 33.50 baht / liter. Retail sales of this new diesel will take effect from March 24, 2023 onwards.
This reduction is the third time following in February the reduction was made twice, totaling 1 baht/liter.
Mr. Wisak Wattanasap, director of the Oil Fund Office, revealed that the reason for this reduction was This was a result of the average world fuel price, especially diesel, but not much. And there are many other volatile factors that need to be closely monitored. Since January 15, March 2023, diesel prices in January averaged $113.95/barrel, February $103.61/barrel, and March 1-15 an average of $102.21. US/Barrel
In addition, the Cabinet on March 14, 2023 approved an extension of the period for reducing the excise tax rate on diesel fuel by 5 baht per liter for another 2 months from May 21 to July 20, 2023.
And the status of the oil fund is starting to improve, with a negative position below the hundred thousand million baht. Therefore, the retail price of diesel should be reduced to the public. which in addition to helping to support people’s cost of living It also helped to prevent the retail price of diesel from increasing and being a hindrance to the country’s economic recovery.
However, oil price volatility still has many factors. It can be seen that there are important events. Regarding fuel prices during the period between 13 February and 15 March 2023, there are many aspects that cause fluctuations in fuel prices, such as Russia reducing oil production by 500,000 barrels per day in March. this or 5% of total production. China’s economic expansion following country opening Federal Reserve signaling further interest rate hikes US dollar volatility and in the case of the US government Order the closure of Silicon Valley Bank (SVB) and Signature Bank (SB), including the financial situation that needs help.
of the Credit Suisse Bank which is the second largest bank in Switzerland
As for the oil fund position on March 12, 2023, the net oil fund was negative 99,662 million baht, divided into a negative oil account of 53,290 million baht and a negative LPG account of 46,372 million baht.
By InfoQuest News Agency (17 Mar. ’23)
Tags: Department of Agriculture, diesel, oil price