A proposed law aimed at empowering energy authorities to enhance regulation of domestic oil and cooking gas prices is advancing toward parliamentary approval, potentially becoming a significant energy policy under the emerging Paetongtarn Shinawatra administration.
Energy Minister Pirapan Salirathavibhaga emphasized on Wednesday that the bill should be reviewed by lawmakers by the end of the year. Mr. Pirapan is continuing this initiative after his reappointment as energy minister, a position he previously held until the Constitutional Court dismissed Srettha Thavisin as prime minister due to an ethics violation.
“This law will ensure that domestic oil prices accurately reflect actual costs without relying on Singapore’s Platts reference prices,” stated Mr. Pirapan.
The bill proposes the establishment of a new commission responsible for determining appropriate tax rates on oil. Currently, this responsibility rests with the Finance Ministry, but under the new law, financial officials will be tasked solely with tax collection.
Mr. Pirapan assured that allowing energy authorities to set tax rates will comply with regulations under the Finance Ministry, with calculations based on prevailing economic conditions.
Additionally, the new law will result in the dissolution of the Oil Fuel Fund Office, paving the way for the new commission to oversee the fund that supports diesel and liquefied petroleum gas (LPG) subsidy programs, which is commonly used by households for cooking.
As per the bill, the commission will convene to discuss oil and cooking gas prices and will implement monthly price adjustments. This approach is designed to provide businesses and households with sufficient time to plan their fuel usage effectively.
The current state policy to keep retail diesel prices below 33 baht per liter is set to expire on October 31, while the subsidy that maintains LPG prices at 423 baht per 15-kilogram cylinder is slated to end on September 30.
On Wednesday, Mr. Pirapan indicated that extensions of these subsidy programs are likely, although he did not specify how long the extensions would last. He stated that the prices of diesel, LPG, and electricity must be controlled in light of the economic slowdown.
