LPG Subsidy Hike Strains State Fuel Fund

The Energy Ministry has announced an increase in the subsidy for liquefied petroleum gas (LPG) to keep domestic cooking gas prices unchanged, thereby maintaining the price of a standard 15-kg cylinder at 423 baht. The subsidy provided via the state Oil Fuel Fund rises from 7.22 to 9.86 baht per kilogramme. This move aims to prevent adverse impacts on the prices of food, goods, and services, which are essential to people's livelihoods. Officials are imposing a cap on LPG prices for three months, ending Oct 31, according to media reports. "The Energy Ministry recognises the potential impact of volatility in global energy prices over the past week, and is utilising the Oil Fuel Fund to manage both retail and ex-refinery oil prices, as well as monitor LPG prices to prevent retail price increases," said Veerapat Kiatfuengfoo, deputy energy permanent secretary and ministry spokesman. Global energy prices remain volatile due to conflicting information from the US and Iran, resulting in uncertainty over whether the Strait of Hormuz will open or close. Authorities are monitoring the situation and continue to implement measures to ensure domestic oil security and price stability, aiming to maintain the cost of living, he said. Following recent interventions to mitigate the impact of energy prices, the ministry is monitoring the Oil Fuel Fund's increasing burden, Mr Veerapat said. As of Aug 7, the fund had a deficit of 71.8 billion baht. He said the ministry is working hard to manage the situation and prevent hardships resulting from the energy crisis. Mr Veerapat requested the public's cooperation in conserving energy and using it as efficiently as possible.