Authorities are benefiting from a drop in global crude oil prices by collecting levies from diesel and gasohol users through the Oil Fuel Fund to repay massive debts incurred by the fuel price subsidy programme, following the outbreak of the Israel–US war on Iran in late February.
West Texas Intermediate and Brent benchmarks have fallen by 9% on average, from US$84.8 and $87.3 per barrel respectively on June 12 to $76.6 and $79.23 per barrel on June 18, said Thai Oil Plc, the country's largest refinery by production capacity.
Before the war, Brent crude prices averaged between $63-70 per barrel, according to media reports.
The drop caused motorists to expect they would be able to buy cheaper fuel, but they will not see a significant decrease in retail fuel prices for some time, said an energy official who requested anonymity.
"This is because it is time for the government to pay back money to oil traders," he said.
Weeks after the war, the government subsidised diesel and gasohol prices through the Oil Fuel Fund by asking oil companies to cap retail fuel prices. It would later compensate the firms for the financial burdens they shouldered.
The drop in crude prices allows officials to resume levy collections from motorists.
As of June 22, users of diesel contributed 0.65 baht a litre, while gasohol 95 users paid 3.1 baht a litre, according to the Energy Policy and Planning Office.
The levies are among the key factors that make diesel and gasohol 95, which is blended with 10% ethanol, remain expensive.
On June 22, gasohol 95 was sold at 38.85 baht a litre while diesel prices stood at 37.5 baht a litre.
Gasohol 95 and diesel prices had been 30.85 and 29.94 baht a litre, respectively, on Jan 20.
According to the Energy Ministry, the Oil Fuel Fund gained 2.45 billion baht on March 1 and plunged sharply to a loss of 58.5 billion baht as of June 22.
