Cabinet approves gasohol price cuts for 3 months

Cabinet approves gasohol price cuts for 3 months

The cabinet has agreed to cut gasohol prices for three months to help people with the cost of living.

Energy Minister Pirapan Salirathavibhaga said yesterday the cabinet had agreed to lower gasohol prices as proposed by the Finance Ministry via an excise tax reduction and financial management of the state Oil Fuel Fund.

Initially, the excise tax will be cut by one baht per litre for all types of gasohol (petrol combined with ethanol). The measure will be implemented from Nov 7 to Jan 7.

The reduction in the gasohol 91 price would be bigger than the cut for other gasohol types, at 2.50 baht per litre, because the Oil Fuel Fund would subsidise it at 1.50 baht per litre in addition to the one-baht excise tax decrease, Mr Pirapan said.

Deputy Finance Minister Krisada Chinavicharana said this would cost the government about 900 million baht a month or 2.7 billion baht in revenue during the three-month period.