Thailand Energy Policy Committee OKs Changes In Oil Levy

BANGKOK -(Dow Jones)- Thailand's Energy Policy Committee Friday decided to adjust contribution rates to the state oil fund from retail sales of fuel, Energy Minister Wannarat Channukul said Friday.

The changes, due to take effect Saturday, will increase the fund's monthly income and help to stabilize retail prices of fuel in the future, Wannarat told reporters.

The oil fund levy on E-10 premium gasohol, a gasoline that is blended with 10% ethanol, will be raised by THB1.00 a liter to THB2.35 a liter, while for E-10 regular gasohol it will be lifted by THB0.90 a liter to THB1.75 a liter.

The levy on B2 diesel, 2% biofuel and diesel blend, will be at THB1.70 a liter, up from THB0.50 a liter.

To promote the use of alternative energy and to reduce imported crude oil, the Energy Policy Committee decided to cut the levy on E-20 premium gasohol by THB0.15 a liter to THB0.15, while maintaining a price subsidy on B5 diesel, a mixture of 5% biofuel and diesel, at THB0.20 a liter.

Meanwhile, the oil fund levy on premium and regular gasoline will be unchanged at THB4.00 a liter.

The ministry has urged oil companies to revise down their marketing margins to a range of THB1.20 to THB1.50 a liter, compared with an average margin of THB0.83 to THB2.04 a liter during January to September, Wannarat said.

The ministry plans to increase the use of alternative sources of energy in the transportation and power sectors to 20.4% of total demand by 2021, from 5.1% at present, Wannarat said.