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Proposal to increase Bangkok’s petrol tax aimed aimed at encouraging public transit

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Transport Minister Suriya Jungrungreangkit plans to propose an increase in excise tax on petrol in Greater Bangkok in order to encourage people to use public transportation. The potential tax increase of 0.50 baht per liter of petrol aims to motivate car drivers to switch to electric trains, which already have reduced fares of 20 baht per trip on certain routes.

The government plans to extend this flat rate to all electric railways within the next two years. In order to cover the costs of subsidies needed for electric train operators, estimated at 7 to 8 billion baht annually, the increased petrol tax could help fund these expenses. This model of subsidizing electric train fares with funds from the energy conservation and promotion fund is practiced in many other countries due to the energy efficiency of electric trains.

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