Thais are robbed through soaring oil refinery margin, says former finance minister

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Local oil prices were lower than those in other Southeast Asian countries because of subsidies from the state’s Oil Fuel Fund while the fund was already 86 billion baht in the red and the loss could exceed 100 billion baht at the end of this month, said Korn.

Thai people are being robbed through the oil refinery margin that rose 10 times over the past year, KLA Party leader Korn Chatikavanij said.

He proposed a ceiling on the margin to prevent profiteering.



Mr Korn who is also a former finance minister held a press conference to discuss soaring oil prices. He said that local oil prices were lower than those in other Southeast Asian countries because of subsidies from the state’s Oil Fuel Fund. The fund was already 86 billion baht in the red and the loss could exceed 100 billion baht at the end of this month, he said.



Mr Korn said that the oil refinery margin was “robbing” Thai people. The margin was at 0.88 baht per liter in 2020 and 0.87 baht per liter in 2021 but soared by 10 times to 8.56 baht per liter this year.

The soaring margin was based on oil prices in Singapore. The oil refinery cost did not rise but burdens were growing on people and the Oil Fuel Fund, Mr Korn said. He asked why the government let refiners make such huge profits.


Mr Korn proposed there be a ceiling on the oil refinery margin, the government impose a windfall tax on oil refiners to raise funds to help the public and the Oil Fuel Fund and the government seriously campaign for energy-saving. (TNA)