The cabinet has given approval to limit electricity costs at 4.18 baht per unit until the year’s end and to establish a diesel price cap at 33 baht per liter until October 31. Energy Minister Pirapan Salirathavibhaga revealed that the cabinet endorsed the proposed measures by the Energy Ministry to regulate energy prices. This maintains the electricity rate at 4.18 baht per kilowatt-hour from September to December 2024. Support measures are also in place for vulnerable groups using up to 300 units of electricity monthly.
In terms of diesel prices, the cabinet recognized a retail price ceiling of 33 baht per liter, a sustainable price until October 31 as per the Oil Fuel Fund’s capabilities. Subsequently, continuous monitoring and management of oil prices will be undertaken by the Energy Ministry.
Mr. Pirapan mentioned discussions with the Finance Ministry to potentially implement measures like an excise tax reduction on diesel to further stabilize oil prices. He is expediting legislative amendments to set a cap on oil prices, highlighting the importance of proposing this to parliament swiftly, given Thailand’s lack of such regulation for over 50 years, despite the significant impact on the public.
Chairman of the Federation of Thai Industries (FTI), Kriengkrai Thiennukul, expressed relief that the government’s decision to maintain the power tariff at 4.18 baht per kilowatt-hour eases concerns about rising operational costs that were threatening business closures. The FTI was concerned about potential increases in the power tariff ranging from 11-44%, as many businesses, especially SMEs, were already struggling amidst economic challenges. Higher operating costs have led to the closure of hundreds of factories, primarily smaller ones, raising doubts about SME survivability with potential electricity price hikes.
