Bangkok 17 Jul – The Federation of Land Transport of Thailand Pointing to the increase in diesel prices, the impact was severe in a wide area. It aims to increase transportation costs by 3% immediately per 1 baht increase in diesel. Suggests that the government delay and cancel the excise tax reduction on diesel by 5 baht per liter until a new government is obtained.
Mr. Apichat Prairungruang, President of the Land Transport Federation of Thailand reveal the impact After the Ministry of Finance did not extend the measures to reduce excise tax on diesel by 5 baht per liter, which will end on July 20, 2023, that when the cost of diesel fuel increases by 5 baht per liter, the impact will definitely occur to all sectors, including the people, the agricultural sector and consumers. production because the costs increased
when diesel prices go up From the current price of 32 baht / liter, the transportation sector has to adjust accordingly. Which will be a step as previously informed to customers since October 2022 that if diesel increases by 1 baht / liter, the transportation fee will immediately increase by 3%, for example, previously the diesel price was 35 baht / liter when it dropped to 32 baht / liter, the transportation cost has been reduced by 9%, and if the cost of gas comes down to 31 baht / liter, the transportation cost must be reduced by another 3% while the customer can accept it. Because during the oil price drop, we adjust the price according to the MOU that we have made together.
However, the president of the Land Transport Federation of Thailand Proposed that during this period, which is the transition period of the government Cancellation of diesel excise tax cuts should be waited for the new government to take over. Because if diesel prices are allowed to rise as high as 5 baht/liter, various products must also increase prices accordingly. Because diesel fuel is the cost of producing products. This may result in a 10% increase in product prices, but when oil prices fall, product prices do not go down as well.
“Therefore, it should be delayed in order for the new government to be established. Until then, how to adjust or change the price? will have clarity But today, we still can't be sure where diesel prices will be. which creates a panic among the general public, and today wages have not yet increased The price of oil will increase by another 4-5 baht / liter, which will definitely have a serious impact, ”said the president of the Land Transport Federation of Thailand.
Still wanting to propose the new government to go back and look at the oil price structure so that Thai people can use oil at a reasonable price in line with ex-refinery prices located in the country not based on prices from refineries abroad
However, will have to keep an eye on how the interim government will take care of solving this situation. in order not to affect the masses or if there is a cancellation of the tax reduction But the diesel price is still sold at 32 baht / liter as before, like this, entrepreneurs, including the public, are still able to endure it.-Thai News Agency
Source: Thai News Agency