# Thailand’s Oil Fuel Fund has approved a 50 satang per litre increase in diesel prices

- Link: https://www.thailand-business-news.com/business/143758-thailands-oil-fuel-fund-has-approved-a-50-satang-per-litre-increase-in-diesel-prices
- Published: 2024-05-31T17:27:54+07:00
- Author: News Desk

**Thailand’s Oil Fuel Fund Executive Committee has approved a 50 satang/litre increase
in diesel prices to 32.94 baht/litre from Friday, due to global oil price volatility
caused by conflicts in Ukraine and Gaza. This decision maintains the diesel subsidy
cap at 1.40 baht/litre.**

The Thai government has announced that the price of diesel will increase by 50 satang
per litre, effective from Friday. This decision comes in response to the recent 
surge in global oil prices. The increase in diesel prices is expected to have a 
significant impact on the Thai economy, as diesel is widely used in the transportation,
agriculture, and manufacturing sectors.

ADVERTISEMENT

The increase in diesel prices is primarily attributed to the rise in global oil 
prices. The price of crude oil has been on an upward trend in recent months due 
to various factors such as the recovery in global demand, supply disruptions, and
geopolitical tensions. The Thai government has been monitoring the situation closely
and has decided to increase diesel prices to reflect the change in global oil prices.

The 50 satang per litre increase in diesel prices is expected to have a ripple effect
on the Thai economy. The transportation sector, which heavily relies on diesel, 
is likely to be hit the hardest. The increase in diesel prices will lead to higher
operating costs for transportation companies, who may pass on the costs to consumers
by increasing fares. This could lead to inflationary pressures and impact the purchasing
power of consumers.

### Related**Posts**

###  󠀁[Asian stocks retreat as oil rises above $100 and investors reassess global rate risks](https://www.thailand-business-news.com/markets/333019-asian-stocks-retreat-as-oil-rises-above-100-and-investors-reassess-global-rate-risks)󠁿

###  󠀁[Thailand’s Floods Expose Severe Vulnerabilities in Its Automotive Supply Chain](https://www.thailand-business-news.com/business/332669-floods-in-thailand-highlight-the-vulnerability-of-the-countrys-automotive-supply-chain)󠁿

###  󠀁[Thailand Business News — Morning Briefing](https://www.thailand-business-news.com/business/332413-thailand-business-news-morning-briefing-2)󠁿

###  󠀁[Thailand is making AI and semiconductors the focus of its next five-year development plan](https://www.thailand-business-news.com/business/332032-thailand-is-making-ai-and-semiconductors-the-focus-of-its-next-five-year-development-plan)󠁿

The agriculture and manufacturing sectors are also likely to be affected by the 
increase in diesel prices. These sectors use diesel for various purposes such as
powering machinery and transporting goods. The increase in diesel prices will lead
to higher production costs, which could be passed on to consumers in the form of
higher prices for goods and services. This could have a negative impact on the competitiveness
of Thai products in the global market.

To mitigate the impact of the diesel price increase, the Thai government has announced
several measures. These include providing subsidies to low-income households, public
transportation operators, and small and medium-sized enterprises (SMEs). The government
is also considering implementing price controls on certain products to prevent excessive
price increases.

In conclusion, the decision to increase the price of diesel by 50 satang per litre
is a necessary step to reflect the change in global oil prices. However, it is crucial
for the government to implement measures to mitigate the impact of the price increase
on the Thai economy and consumers. By providing subsidies and implementing price
controls, the government can help reduce the burden on low-income households and
SMEs, and prevent excessive price increases.