An academic proposed the government cut the excise tax on oil by two baht per liter to relieve the burden of the state Oil Fund that is subsidizing fuel prices.
Independent academic Praipol Koomsup said the Oil Fund was already 14 billion baht in the red for subsidizing diesel and cooking gas prices and the subsidization could not continue if the crude price reached US$100 a barrel due to conflicts in the Middle East and between Ukraine and Russia.
He proposed the government reduce the excise tax on diesel and petrol by about two baht per liter from nearly six baht per liter. Otherwise, the government could not continue to cap the diesel price at 30 baht per liter, he said.
“Regarding the presently challenged stability of the government, it is unlikely to let the diesel price exceed 30 baht. Therefore, it is appropriate to cut the tax on petrol and diesel temporarily by two baht per liter to help lower the cost of living,” Mr Praipol said. (TNA)