BANGKOK: Thailand will let domestic energy prices move in line with market forces and is planning to provide support to ease the impact of higher fuel prices caused by the war in the Middle East, the finance minister said on Wednesday.
Thailand is facing a major global energy crisis and cannot distort market prices, Ekniti Nitithanprapas told a television news show, adding that price suppression led to market distortions, hoarding, and unnecessary budget losses.
The government had tried to cap domestic diesel prices earlier this month.
The government will support vulnerable groups by adding funds to state welfare cards to help ease living costs, Ekniti said.
The government could offer fuel coupons, fuel cards, or direct cash transfers to operators or drivers in the transport sector, which includes about 360,000 truck operators and nearly 30,000 public transport operators, along with taxis, vans, and motorcycle taxis.
The commerce ministry will secure cheaper fertiliser and promote the use of organic alternatives for farmers, Ekniti said.
The government will support fishermen with the use of B20 biodiesel, and manage palm oil supply to prevent price spikes, he said.
The government will support public project contractors and provide soft loans to help the industrial and services sector with liquidity, Ekniti said.
Prime Minister Anutin Charnvirakul told reporters there would inevitably be some impact from allowing oil prices to move freely and that the government would use all available ministerial tools to mitigate the effect. “Everyone is working on it,” he said.
The central bank has said economic growth could drop by up to 0.7 percentage points if the war continues into the second half of the year and oil prices stay elevated.
The central bank last month forecast growth of about 2% for this year, slowing from last year’s 2.4%.‑Reuters
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