Diesel Price Fixed at 33 Baht/Liter, NESDB Prepares First Debt Installment Payment.

Bangkok: The National Oil and Gas Policy Office (NOC) has confirmed the continuation of the diesel price cap at 33 baht per liter, leveraging the fund's mechanism to maintain this price as long as the global oil price remains below 100 US dollars per barrel. The office has reported improved liquidity in the fund and is set to make the first installment payment of 139 million baht on its principal debt, aiming to clear the debt by September 2028. According to Thai News Agency, Mr. Pornchai Chirakulpaisan, Director of the Office of Policy and Strategy (ONSPST), detailed that the measure to keep diesel prices steady at 33 baht per liter was due to expire today. However, the Oil Fund Management Committee (OFMC) has opted not to seek Cabinet approval for an extension but will instead rely on the Oil Fund mechanism to manage domestic diesel prices. Should global oil prices exceed 100 US dollars per barrel, adjustments may be necessary, guided by market conditions. Currently, the global oil price stands at approxim ately 81.68 US dollars per barrel. The fund, which collects 1.72 baht per liter, has seen improved liquidity since August, generating a monthly income of 7,000-9,000 million baht, with daily inflows of 231 million baht. The fund's current deficit as of October 27, 2024, amounts to 92,041 million baht, with the oil account and LPG account showing deficits of 44,564 million baht and 47,447 million baht, respectively. Tomorrow marks the beginning of principal debt repayment, with the fund set to pay 139 million baht and manage monthly interest payments ranging from 250-300 million baht. The repayment schedule will see an increase in principal payments from December 2024, reaching a peak in October 2025. The fund aims to settle its debts by September 2028. Additionally, preparations are underway for a 2025-2029 oil crisis support plan, which must be finalized by December 2024 for Cabinet submission. The oil fund was evaluated at 4.45 out of 5 points in the initial fiscal year, while the NESDB received a high I TA assessment score of 95.96 out of 100, ranking it the highest within the Ministry of Energy and second among public organizations.