Karn: Govt Cuts Oil Prices with 57 Billion Baht Deficit Fund

MGR Online•General•18d ago

Reader Briefing

Economist Karn Jatikavanich accuses the government of using the deficit-ridden Fuel Fund to subsidize oil price cuts, claiming it's a debt deferral.

•The Thai government has ordered a 2.5 Baht per liter reduction in fuel prices, citing declining global oil prices.
•Economist Karn Jatikavanich criticizes this move, stating it's funded by the Fuel Fund, which is already 57 billion Baht in deficit.
•Karn argues that this is not a sustainable solution but a way to conceal debt and burden future generations.
•The government claims the price cut is supported by mechanisms like oil refinery excess profits and managing the Fuel Fund's liquidity.

Overview

•The government ordered a 2.5 Baht per liter reduction in fuel prices due to declining global crude oil prices.
•Prime Minister Anutin Charnvirakul noted easing Middle East tensions leading to falling global oil prices, instructing the Ministry of Energy and Fuel Fund Secretariat to monitor and adjust domestic retail prices.
•The Energy Policy Administration Committee (EPAC) set a ceiling price for gasoline and diesel at no more than 35.00 Baht per liter.
•This action was taken to alleviate the cost of living burden and reduce operational costs for businesses, aligning with global oil price trends.
•Retail prices for gasoline and gasohol were reduced by 2.51 Baht per liter, and diesel by 2.56 Baht per liter (to 34.94 Baht), utilizing refinery excess profits and managing Fuel Fund liquidity.
•Karn Jatikavanich criticized the move on July 7, stating it was not due to price restructuring or tax reduction as promised, but by using the Fuel Fund.
•Karn warned that this action is not sustainable, constitutes debt concealment, and transfers the repayment burden to the public in the future, exacerbated by the Fuel Fund's deficit of 57 billion Baht.
•While the Ministry of Energy mentioned drawing from refinery margins to help the Fuel Fund, Karn believes this is a temporary, legalistic approach rather than deep energy price structure reform.

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Key Quotes

Karn Jatikavanich

"This is not a sustainable solution, but rather debt concealment and pushing the burden onto the public to repay in the future."

นี่ไม่ใช่การแก้ปัญหาที่ยั่งยืน แต่คือการซุกหนี้และผลักภาระให้ประชาชนต้องตามจ่ายคืนในอนาคต

Karn Jatikavanich

"The urgent announcement to reduce oil prices, following the Prime Minister's order, is not due to price restructuring or tax cuts as promised, but rather drawing money from the 'Fuel Fund' to subsidize prices."

การประกาศลดราคาน้ำมันอย่างเร่งด่วนตามข้อสั่งการของนายกรัฐมนตรี แท้จริงแล้วไม่ได้เกิดจากการปรับโครงสร้างราคาหรือลดภาษีอย่างที่เคยรับปากไว้ แต่เป็นการดึงเงินจาก 'กองทุนน้ำมันเชื้อเพลิง' มาใช้อุดหนุนราคา

Anutin Charnvirakul

"In the past 1-2 weeks, Middle East tensions have eased, causing global crude oil prices to continuously decline."

ในช่วง 1-2 สัปดาห์ที่ผ่านมา ความตึงเครียดในตะวันออกกลางเริ่มคลี่คลาย ส่งผลให้ราคาน้ำมันดิบในตลาดโลกปรับตัวลดลงอย่างต่อเนื่อง

Key Entities

Person

Karn Jatikavanich(การณ์ จาติกวณิช)ℹ️

Economist and Deputy Leader of the Democrat Party's economic faction, who criticized the government's fuel price reduction policy.

Anutin Charnvirakul(อนุทิน ชาญวีรกูล)ℹ️

Prime Minister who commented on the declining global oil prices and instructed the relevant ministries.

Organization

Government(รัฐบาล)

The executive body that ordered the reduction in fuel prices.

Fuel Fund(กองทุนน้ำมันเชื้อเพลิง)

A fund used to subsidize fuel prices, currently facing a significant deficit.

Ministry of Energy(กระทรวงพลังงาน)

The ministry responsible for overseeing energy policy and instructed to monitor fuel prices.

Fuel Fund Secretariat(สำนักงานกองทุนน้ำมันเชื้อเพลิง)

The body responsible for managing the Fuel Fund.

Energy Policy Administration Committee (EPAC)(คณะกรรมการบริหารนโยบายพลังงาน (กบง.))

The committee that set the price ceiling for gasoline and diesel.

Oil Refineries(กลุ่มโรงกลั่น)

The entities from whom excess refining profits are being drawn to compensate for fuel price subsidies.