Cabinet approves B20bn loan plan to stabilize fuel prices
According to government spokeswoman Rachada Dhnadirek, the borrowing can proceed once the Cabinet approves the public debt management plan, reports the
The Cabinet has backed a B20 billion loan plan to steady fuel prices, government spokeswoman Rachada Dhnadirek said on April 29, as rising global oil costs push up living expenses in Thailand and Phuket. The borrowing can proceed once the public debt management plan wins Cabinet approval, according to the Bangkok Post.
Ms Rachada said the US-Israel war on Iran since late February has reduced global fuel supplies and lifted oil prices. That has fed through to retail fuel costs in Thailand.
Oil Fuel Fund faces deficit and repayment schedule
The Oil Fuel Fund reported a deficit of B53 billion as of April 5. It also had outstanding compensation debts to fuel traders of about B56 billion, creating liquidity problems for operators and increasing the risk of fuel shortages.
At an Oil Fuel Fund Management Committee meeting on April 10, officials agreed to ask the Cabinet to approve the borrowing plan during the crisis. The B20 billion loan is scheduled for use between June and August 2026.
Repayment is set to run from July 2028 through August 2031. Ms Rachada said the loan is intended to strengthen the fund’s liquidity, ease the energy price crisis and keep domestic fuel prices aligned with global market conditions.
Source: https://www.thephuketnews.com/cabinet-backs-b20bn-loan-to-steady-fuel-prices-100062.php
