The cabinet on Tuesday extended the five baht a litre reduction in excise tax on diesel for another two months to help curb the local pump price amid high global prices.
Finance Minister Arkhom Termpittayapaisith said the cabinet agreed with the Finance Ministry that the previous tax cut, which expires on July 20, should be extended until Sept 20.
He said it was a short term measure and if crude prices dropped the government would use the Oil Fuel Fund as the main mechanism to manage the retail diesel price.
Ekniti Nitithanprapas, director-general of the Excise Department, said that the excise tax on diesel had been decreased since Feb 18 and that would last until July 20.
High crude prices raised the local diesel price and that affected both the people and the business sector. Tax measures were curently necessary to prevent the retail price of standard diesel from causing a rise in the cost of living, and to stimulate the economy, he said.
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