Removal of fuel excise tax cut: Minimal impact on CPI

Thailand’s Council of Economic Ministers, under the Democrat-led government, decided to extend most of the economic stimulus packages imposed by the previous Samak Sundaravej government for another six months except for the fuel excise tax reduction. Gasohol had an excise tax reduction to 0.0165 baht (US$0)/liter from 3.3165 (US$0.10)/liter while the diesel excise tax was cut to 0.005 baht (US$0)/liter from 2.30 baht (US$0.07)/liter. The aftereffects of the removal of the fuel excise tax reduction will be too small to change the extremely low inflation environment and the conduct of Thai monetary policy. (January 9, 2009)