Surapong backs plan to subsidise fuel prices

Surapong backs plan to subsidise fuel prices
BREAKING NEWS

Deputy Prime Minister and Finance Minister Surapong Suebwonglee on Thursday voiced his support for the Energy Ministry's plan to use money from the Fund for Energy Conservation Promotion and the State Oil Fund to ease the local oil price hike.

He said various hedge funds turned to speculate on oil products after global oil prices surged to US$104 per barrel in the New York market since the Organisation of Petroleum Exporting Countries decided not to increase production and the US dollar continued to weaken.

To ease the hardship of the public in the short run, Dr Surapong said he agreed with Energy Minister Poonpirom Liptapanlop's idea of bringing money from both state energy funds to subsidise local fuel prices.

Although some funds were originally set aside to finance construction of the capital's electric mass transit routes, the aditional monies could be used first as subsidies to address the short-term financing problem.

He said the building of the electric rail routes would take long time to complete, so the government could seek other sources of funds to finance its implementation.

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bangkokpost.com

Diesel subsidy won't load Oil Fund with debt, says minister

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BANGKOK, March 7 (TNA) - Energy Minister Poonpirom Liptapanlop on Thursday reemphasised the ministry's proposed plan to ease the diesel price hike through a subsidy that he said would not saddle the State Oil Fund with debt burdens.

Lt.Gen. Poonpirom said the surge in the cost of crude in the United States market to a record high of almost US$105 per barrel is considered a crisis affecting the volatility of prices in general.

The only way to cope with the situation is to seek cooperation from the public in campaigns for saving energy and educating consumers to use alternative energy sources.

The ministry had accelerated its promotion of the campaigns on a continual basis and at the same time prepared a short-term plan to reduce the impact of the diesel price hike to go before the National Energy Committee on March 12.

The plan would be implemented until July this year because it is believed oil prices would drop after that.

Never, she said, had had she hinted at fixing diesel prices at no more than 30 baht per litre, as has been incorrectly reported elsewhere.

Lt.Gen. Poonpirom reiterated the plan would not incur the Oil Fund with debt because the money used to subsidise the diesel price comes from oil surcharge collected from the sale of premium and regular gasoline, and premium gasoline.

Each month, around Bt900 million of oil surcharge goes to the Oil Fund. Of this, around Bt500-600 million will be brought to subsidise the price of diesel fuel. (TNA)-E005

enews.mcot.net

in short we are going to rob peter to pay paul untill July ? :confused: