B20bn loans to bolster diesel subsidyThe Oil Fuel Fund Office (Offo) is preparing to obtain loans worth 20 billion baht from 10 commercial banks, following the government's approval to seek loans to support its subsidy programme during the global oil price surge. Global oil prices rose rapidly after the easing of lockdown measures and the reopening of many countries to restore their economies, which led to higher demand for oil. If global oil prices continue to increase above $90 per barrel, the Offo may consider seeking another 10-billion-baht loan. Another measure to control retail oil prices in Thailand is a reduction in the proportion of palm oil-derived methyl ester to only 7% starting today. The subsidy programme is expected to keep diesel prices below 28 baht per litre.

Source: Bangkok Post December 01, 2021 03:52 UTC