Bangkok: Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, responded to Korn Chatikavanij’s questions regarding the energy crisis, emphasizing the need to prioritize vulnerable groups. He acknowledged preparations to use the Emergency Decree for borrowing funds if necessary and stated that Section 172 of the Constitution would be invoked.
According to Thai News Agency, during the 8th session of the House of Representatives, chaired by Speaker Sophon Saram, Korn Chatikavanij, a Democrat Party MP, inquired about the progress of the Committee on the Appropriateness of Fuel Price Determination (CTRP) in reaching a conclusion on fair fuel pricing. He noted that the 15-day deadline for this task had passed and asked about the government’s plan to recover at least 20 billion baht in excess profits from refineries for the public.
Mr. Ekniti explained that the Comptroller General’s Office (CGO) reviewed the refining margin data announced by the Ministry of Energy. They found that the margins were based on Singaporean prices and did not include actual refining costs during the Middle East conflict. The CGO summoned refineries for discussions and concluded that refining margins did not reflect true costs. Refineries were requested to adjust margins to reflect the actual situation.
Regarding refineries with selling prices exceeding costs in March, the CGO suggested using the Oil Shortage Act of 1973. This empowers the Energy Policy Committee (EPC) to take action. The Minister of Energy presented this proposal to the Cabinet, leading to a reduction in excess returns of approximately 2 baht per liter in March. The situation for April will need reconsideration, aiming to use refining costs that reflect actual costs.
Mr. Ekniti addressed excise tax collection, highlighting the balance between fiscal stability and public welfare. The Oil Fund mechanism is being used to maintain price stability, a mechanism not found in other countries. However, excise tax remains a major revenue source, and the national treasury needs sufficient revenue to cover expenses, making a reduction in excise tax impossible.
Following this, Mr. Korn inquired about the preparation of the emergency decree for borrowing 500 billion baht, which had not been discussed with the Ministry of Finance. He expressed concern about maintaining fiscal discipline, noting that the country’s fiscal position is currently good, despite steadily increasing public debt.
Mr. Ekniti responded that Section 172 refers to an emergency situation, and efforts are being made to see which budget allocations can be used for relief. He stated that the definition of a crisis can be interpreted in many ways and mentioned international acknowledgment of the Middle East conflict as a global crisis. Financial resources are being prepared, with a focus on targeting those in need first.
Mr. Ekniti admitted that if the allocated budget is insufficient, he is prepared to invoke Article 172. Efforts are focused on transitioning the country, helping Thailand regain strength, and shifting from oil and natural gas imports to renewable energy sources. This aims to enhance Thailand’s competitiveness after overcoming the crisis.
He concluded by stating that the budget is used at its maximum limit, with constraints on deficits and loan principal repayments. Efficient resource use is essential, and invoking Article 172 may be necessary if required.