Economist Urges Broad Fuel Tax Cuts to Ease Cost of Living in Thailand

As global oil prices hover between $100 and $120 per barrel, Praipol Koomsup, an energy expert and former dean of the Faculty of Economics at Thammasat University, has advised the Thai government to consider broad-based excise tax cuts on fuel. According to Khaosod Online, Praipol argues that if the government chooses to subsidize costs through tax relief, it should apply to all fuel types rather than targeting specific categories. This approach aims to ensure that the benefits of lower prices reach a wider segment of the population, with suggestions to prioritize deeper tax cuts for E20 gasohol and B20 diesel.

For residents and travelers in Thailand, this proposal highlights the ongoing pressure on domestic retail fuel prices caused by international market volatility. While the government has not yet enacted these specific tax changes, the expert suggests that the state may need to sacrifice some tax revenue to alleviate the cost-of-living burden on the public. Looking ahead, Praipol notes that global oil prices could potentially drop to $90 or even $60–$70 per barrel if geopolitical tensions in the Middle East and the Russia-Ukraine conflict subside. Whether the government will adopt these tax measures or wait for global market stabilization remains to be confirmed, as the situation remains highly dependent on international political developments.