Amid the hustle and bustle of the vibrant city, a meeting was called to order on an auspicious Wednesday. The attendees were none other than the prestigious members of the OFFO committee, gathering under the stern yet visionary gaze of the esteemed Deputy PM and Energy Minister, Pirapan Salirathavibhaga. The air was electric with anticipation as they convened to tackle a matter of great urgency: the relentless upward march of global oil prices.
With a sense of resolve that could only be described as heroic, the committee reached a unanimous decision that would bring a sigh of relief to many: the 30 baht per litre price ceiling on diesel would continue to shield the populace from the stormy seas of the global oil market. Yet, this was no ordinary decision. To counter the menacing tide of price hikes, the Oil Fuel Fund would magnanimously increase its subsidy by a modest yet impactful 0.4 baht per litre, thus ensuring that the price of diesel would not dare to breach the 30 baht mark. The total contribution of the fund now stood at a gallant 4.57 baht for every litre of diesel sold, a testament to their commitment to the common good.
The committee, with eyes like hawks, pledged to monitor the fluctuations of global oil prices with unwavering vigilance. They knew all too well that the battle was far from over, and they were prepared to deploy whatever means necessary to safeguard the interest of the people.
The narrative rewinds to a time in September, a period when the 30-baht price cap was first introduced. It was a move born out of compassion, designed to lighten the financial load on the shoulders of the masses. This protective measure was extended every three months, a beacon of hope until its expiration on the ill-fated day of March 31.
Then came April 2, a day when some oil retailers, driven by forces beyond their control, began to sell diesel at prices that dared to whisper above the 30 baht mark. The numbers spoke volumes: 30.49 to 30.60 baht, figures that, while seemingly insignificant, echoed in the ears of those who depended on this vital fuel.
In a twist that could rival the plot of a dramatic screenplay, the committee was confronted with a stark reality: the Oil Fuel Fund was deep in the red, drowning in a deficit of 99.82 billion baht. This monumental figure was split between the oil account and the liquid petroleum gas (LPG) account, with 52.72 billion and 47.09 billion baht, respectively.
In a moment of strategic brilliance, the energy minister disclosed plans to engage in dialogue with the Finance Ministry. Their mission? To explore the possibility of extending a lifeline in the form of an excise tax cut on diesel fuel at 1 baht per litre, a beacon of hope set to extinguish on April 19.
As the sun rose over Bangkok, the city’s heartbeat reflected in the price boards of PTT and Bangchak stations. The numbers told a story of resilience and determination:
- Diesel B7, B10 and B20 at a steadfast 29.94 baht per litre
- The noble Super Power Diesel B7 at PTT, commanding a price of 41.24 baht per litre
- The illustrious Hi Premium Diesel S B7 at Bangchak, proudly standing at 44.14 baht per litre
Thus, the tale unfolded, a saga of unwavering determination and strategic ingenuity, as the guardians of energy in a land known for its boundless spirit faced the tides of change head-on. The OFFO committee, under the watchful eye of Deputy PM and Energy Minister Pirapan Salirathavibhaga, had once again proven their mettle in the ongoing saga of fuel price battles, a narrative of resilience, hope, and the eternal pursuit of balance in the ever-evolving dance of economy and energy.
Subsidies like these are a short-term fix but they hardly address the underlying issue of our reliance on fossil fuels. Wouldn’t it be better to invest more aggressively in renewable energy sources?
Renewables aren’t reliable enough yet to support our energy needs. Oil has powered economies for decades. We can’t just switch overnight.
It’s exactly this mindset that hinders progress. Renewable tech has made leaps in efficiency and cost. The transition is not only necessary but inevitable.
Agreed @GreenTechie. It’s high time we accelerate the shift. The longer we wait, the more we harm our planet.
Such subsidies, while politically popular, are economically unsustainable in the long run. The deficit in the Oil Fuel Fund is alarming!
Exactly, and who’s going to pay for that deficit? The taxpayers. It’s just moving money from one pocket to the other with extra steps.
But don’t these measures help the common people though? With prices shooting up everywhere, this seems like a necessary relief.
As someone who’s struggling with bills, this price cap is a lifesaver. Not all of us can worry about the ‘big picture’ problems when daily life is a challenge.
Understandable, but there are more efficient ways to help without causing long-term economic issues. Direct assistance to those in need, for example.
The more we subsidize diesel, the less incentive there is for people and businesses to conserve fuel or switch to cleaner alternatives. It’s a vicious cycle.
Not everyone can afford to just switch to an electric vehicle or adjust their business model on the fly. We need these subsidies.
That’s true, @DieselDevotee, but we also need policies that encourage and facilitate that transition. Subsidies can’t be the end-all solution.
Is this really the best use of taxpayer money? It feels like a band-aid solution that doesn’t work towards any sustainable future.
Oil is the backbone of our economy. Protecting consumers from price hikes is critical, especially for those in lower income brackets.
The best investment for taxpayer money would be in sustainable practices that ensure a future for the next generations.
Everyone’s missing the point. This isn’t about diesel or renewables. It’s about political maneuvering ahead of elections. Classic playbook.