The domestic diesel price will continue to stay at 34.94 baht a litre for the sixth consecutive week until the end of July though global oil prices are likely to decrease, says the Oil Fuel Fund Office (Offo).
The situation will help the government relieve its huge spending from the Oil Fuel Fund to support diesel and liquefied petroleum gas (LPG) price subsidy programmes.
Wisak Watanasap, director of the Offo, said yesterday the subsidy for diesel price decreased to 2.34 baht a litre, down from 3.46 baht a litre last week.
Last month, the diesel price subsidy went up as high as 9.57 baht per litre.
The Offo will meet next month to determine the new retail price of diesel.
The government earlier fixed the diesel prices at below 30 baht a litre to help households and businesses deal with higher energy prices, but with a dwindling amount of money in the Oil Fuel Fund it needs to decrease its subsidy, having diesel prices gradually increase.
The rate of 34.94 baht has been enforced since June 13 while the market price of diesel currently stands at 37.39 baht a litre.
Authorities earlier planned to decrease the diesel price subsidy, allowing diesel prices to increase to 38 baht per litre in order to lessen the burden on the Oil Fuel Fund.
The fund already runs a loss of 115 billion baht.
National oil and gas conglomerate PTT Plc earlier announced it would allocate 3 billion baht to support the fund, following its months-long support of the diesel and LPG price subsidy programmes.
The company said it would give 1 billion baht each month from July to September.
