Bangkok: Korn Chatikavanich, a Member of Parliament and Deputy Leader of the Democrat Party, has expressed concerns over the Prime Minister's recent directive to lower fuel prices.
According to Thai News Agency, Korn criticized the reduction, which was announced following the Prime Minister's order to the Minister of Energy, as a temporary solution that fails to address underlying issues.
Korn highlighted that the price cut was not achieved through a revised price calculation formula or tax relief, but rather by utilizing public funds from the Oil Fund. This fund currently holds a debt of over 57 billion baht, a burden that ultimately falls on the public to repay. He emphasized that while fuel prices have been lowered, the financial implications of the fund's debt remain unresolved.
For the diesel sector, subsidies from the fund have increased significantly, with B7 rising from 0.19 baht per liter to 2.90 baht, and B20 from 5.79 baht to 8.46 baht. Conversely, contributions to the fund from the gasoline and gasohol group have decreased, with Gasohol 95/91 contributions dropping to 0.42 baht from 2.49 baht. The Oil Fund's accumulated deficit, attributed to previous price freezes, has delayed the public's access to cheaper oil when global prices decrease, as funds must be allocated to settle existing debts.
Korn also mentioned that Ekanat Promphan, the Minister of Energy, informed him of additional measures, including negotiating discounts on refining margins. These measures, aimed at reducing dependency on the Oil Fund, will be detailed in the Royal Gazette. While Korn acknowledged this as a positive move, he viewed it as a short-term solution rather than a comprehensive reform for sustainable and transparent pricing practices.