The board of the Oil Fuel Fund Office (OFFO) resolved on Monday to keep the local diesel price at 34.94 baht per litre, while petrol prices will drop significantly on Tuesday.
OFFO director Wisak Wattanasap said the 34.94-baht diesel price would remain for the eighth consecutive week so that the diesel subsidy from the Oil Fuel Fund would drop from 1.13 baht per litre on Monday to 0.24 baht on Tuesday.
He said the global diesel price fell from US$134.86 per barrel on July 29 to $124.34 per barrel on July 5 on the expectation of lower fuel demand due to economic recession concerns, the debts of emerging economies and Covid-19 controls in China, the world's biggest oil importer.
On Sunday the state's Oil Fuel Fund was 117.2 billion baht in the red, caused by 76.78 billion baht from its oil subsidy and 49.44 billion baht from its cooking gas subsidy.
Meanwhile, PTT and Bangchak Corp would cut their petrol prices by one baht per litre on Tuesday to 43.86 baht per litre for premium petrol, 36.45 baht for gasohol 95 E10, 36.18 baht for gasohol 91 E10 and 35.34 baht for gasohol E20. The price of gasohol E85 would fall by 0.60 baht per litre to 32.34 baht.
