Thai government to end petrol subsidy

The Thai government has said that it will not extend its excise tax subsidy for on petrol, as the taxes are needed to help promote alternative fuels. According to Energy Minister Wannarat Channukul, there are no immediate signs that oil demand would strengthen, so crude oil prices in the second half of 2009 are expected to remain within the current trading range. Thai’s Oil Fund subsidizes E20 by 1.26 baht (US$0.04) per liter, E85 by 7.53 baht (US$0.22) per liter; and B2 and B5 biodiesel by 2.23 baht (US$0.06) per liter. (June 27, 2009)