BANGKOK, March 26 (Xinhua) -- Thailand's Oil Fuel Fund Management Committee has approved a reduction in subsidies for diesel and gasoline, resulting in an increase of 6 baht (about 0.18 U.S. dollars) per liter across all fuel types as global oil prices continue to rise.
The price adjustment, effective from Thursday, came amid escalating tensions in the Middle East, which have driven sharp increases in international fuel prices.
Officials said the adjustment also aligns domestic fuel prices more closely with those of neighboring countries, where fuel costs have already risen. Diesel prices in the Singapore market, for example, have surged significantly, adding pressure to domestic pricing in Thailand.
Maintaining lower prices had raised concerns over cross-border smuggling and stockpiling, which could further strain national resources, government leaders warned.
The Oil Fuel Fund has been absorbing subsidy costs of more than 2.5 billion baht per day, placing a strain on its financial position and prompting authorities to act to preserve liquidity for long-term price management.
Authorities also urged the public to use energy efficiently as the country navigates ongoing volatility in global energy markets. (1 baht equals 0.030 U.S. dollars) ■
