Thailand to increase subsidy for B2 diesel fuel

Thailand’s Energy Policy Committee is increasing the subsidy for B2 diesel by 0.50 baht a liter. B2 diesel is a blend of 2% biodiesel with petroleum diesel fuel. This policy will keep the price of retail B2 diesel fuel below 30 baht (US$.99) a liter. The increase in global oil prices has impacted the retail cost of diesel, widely used in trucks and pick-ups, causing a hardship for business. Thailand began its policy of diesel fuel subsidies late last year. This latest subsidy increase could lower the state Oil Fund by 7 billion baht (US$229.7 million) by the end of March 2011. At the end of February, the fund had net assets of 21.68 billion baht (US$711.6 million.) Prime Minister Abhisit Vejjajiva said that subsidy options will come up for review again when the Oil Fund hits 10 billion baht (US$328.3 million). (March 4, 2011)