BANGKOK, Thailand – The Committee on Energy Policy Administration (CEPA) has resolved to slash ex-refinery prices for B7 and B20 diesel by 2 baht per liter.
The resolution will take legal effect following its publication in the Royal Gazette today.
Energy Minister Akanat Promphan announced that the move, aimed at lowering retail prices by April 9, marks the first use of the 1973 Emergency Decree to intervene in refinery pricing.
The Ministry of Energy has introduced a “Singapore Discount” system, allowing the government to set prices by applying a discount to the Singapore benchmark.
This special mechanism was introduced to restructure prices in response to the Middle East crisis, which has caused refined oil prices to surge abnormally.
He also gave assurances that he would supervise the measure to ensure the price cuts do not impact the refineries’ liquidity.
The policy is expected to reduce B7 retail prices by 2.14 baht per liter while offering deeper discounts for the B20 logistics sector. This intervention also provides fiscal relief for the Oil Fuel Fund, which currently faces a 56 billion baht deficit.
The Energy Minister also confirmed readiness to manage energy supplies to ensure sufficiency during the Songkran festival, stating he will closely monitor the situation throughout the seven-day period.
Furthermore, the government is accelerating the promotion of biofuels, particularly B20 diesel, by coordinating with service stations to ensure B20 pumps are available every 100 kilometers along major highways by April 20. (TNA)
