• 3 minutes Natural gas is crushing wind and solar power
  • 7 minutes OPEC and Russia could discuss emergency cuts
  • 11 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 7 mins So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 56 mins Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
  • 7 hours Blowout videos
  • 10 hours Question: Why are oil futures so low through 2020?
  • 3 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 4 hours CDC covid19 coverup?
  • 6 hours Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 hours The Arithmetic Of Fracking
  • 18 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 1 day Shorting Gold
  • 4 hours Who decides the Oil costs?
  • 2 days Peak Shale Will Send Oil Prices Sky High

New Thai Government to Scrap Country’s Oil Fund?

New Thai Government to Scrap Country’s Oil Fund?

During a 1 July election rally, Pheu Thai party candidate Yingluck Shinawatra, expected to be first female Prime Minister when the Election Commission validates the recent poll’s results, said that her party would scrap the Oil Fund so that the prices of gasoline and diesel would immediately be reduced.
 
Yingluck said back then that the Fund tax levies would not be replaced, making the retail prices of premium gasoline and diesel much cheaper, The Nation Online reported.
 
After the Pheu Thai party won 265 of the 500 House seats in the 3 July polls, Yingluck told reporters four days later that the new government had no plans to abolish the Oil Fund, but instead would only temporarily suspend gasoline and diesel levies.
 
Thailand established the Oil Fund in March 1979 to ameliorate the impact of future global oil price increase on the Thai economy. When world oil prices rise, Oil Fund taxes collected earlier are used to minimize upward price adjustments.
 
Abolishing the Oil Fund would also mean that biofuel gasoline and biodiesel subsidies would also be affected, hampering the government's promotion of alternative energies. Subsidies for liquefied petroleum gas (LPG), heavily used for cooking and vehicles throughout the country, would also be affected.
 
Accordingly, some Pheu Thai party officials have suggested that royalties on oil and natural gas concessions, amounting to more than $1.33 billion annually could also be tapped to cover some of the loss of the Oil Fund energy subsidies and lessen their impact on the electorate.
 
By. Charles Kennedy, Deputy Editor OilPrice.com



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News