The Ministry of Finance has given the green light to reduce the "diesel price" by 50 satang per liter to 34.50 baht, effective 15 Feb. 66.

Mr. Wisak Wattanasap, Director of the Oil Fund Office (NFC). Revealed that the meeting of the Fuel Fund Management Committee (FPF) agreed to reduce the retail price of diesel fuel by 50 satang/liter, resulting in the retail price of diesel being at 34.50 baht/liter, which will be effective from 15 July. 66 onwards. This reduction is the first time in 7 months after the price of diesel fuel was moved to 35 baht/liter since 14 June 65.

The said reduction in retail prices is a result of 2 important factors: the factor of the world oil price situation which has decreased. There have been signs of decreasing since November 65. In 65, the average price of diesel oil (Gas Oil) in the world market was 135.53 USD/barrel. And in January 66 Diesel prices dropped to an average of $116.12/barrel.

There is also a factor from the Cabinet's approval to reduce the tax rate by approximately 5 baht/liter for another 4 months from 21 Jan. - 20 May 66, which is a continuous measure since July. 65 onwards, resulting in the liquidity management of the Fuel Fund adjusting in a better direction.

However, if the oil price situation still tends to decrease further. It is expected that further consideration will be given to the appropriateness of adjusting the retail price of diesel fuel.