State oil fund to extend subsidy till September

Thailand’s State Oil Fund (SOF) will extend its price subsidies for retail fuels until the end of September, at a cost of 16 billion baht (US$468.22 million). According to Energy Minister Wannarat Channukul, the move is an attempt to curb the impact on motorists of steadily rising prices. The Ministry of Finance recently raised excise tax on all fuels by two baht (US$0.06) in order to raise revenues. The hike did not immediately affect retail prices, however, as the Energy Ministry decided to subsidize part of the additional costs for motorists until June. Also, the ministry used SOF funds to absorb the additional tax expenses. (June 2, 2009)