Thailand Explores New Funding Sources to Stabilize Oil Fund
Industry Minister Ekkanat Promphan is seeking to address the Oil Fuel Fund's 100 billion baht deficit by tapping into energy conservation funds and oil company dividends.
According to a report by Prachachat Business, Thailand’s Minister of Industry, Ekkanat Promphan, is actively seeking strategies to improve the liquidity of the Oil Fuel Fund, which currently faces a deficit of approximately 100 billion baht. To stabilize fuel prices, the Ministry is considering utilizing unused capital from the Energy Conservation Fund and requesting that the Ministry of Finance evaluate the possibility of redirecting dividends from oil companies to support the fund. Additionally, the government plans to collect 1.2 billion baht in new refinery margins.
Minister Ekkanat emphasized that reducing excise taxes remains a final resort, as the government prioritizes alternative funding mechanisms to maintain price stability. For residents and travelers in Thailand, these measures are intended to prevent sharp fluctuations in fuel costs, which directly impact transportation and logistics expenses across the country.
While these strategies are currently under consideration, several details remain to be confirmed, including the specific timeline for implementation and the final approval from the Ministry of Finance regarding the use of oil company dividends. Stakeholders are waiting for further policy directives to see how these financial adjustments will affect domestic energy prices in the coming months.
