Oil fund reserves looking thin

Institute director Sivanan na Nakorn said the fund's monthly revenue of about Bt70 million was close to monthly expenses. However, its expens¬es looked like rising because of higher consumption of alter¬native fuels like gasohol and biodiesel which the fund sup¬ports financially.

In the near future, more expenditure on these fuels is expected when gasohol E85 is introduced, while the fund also needs to pay compensation of about Bt600 million to oil retailers as subsidies for the temporary excise tax cuts.

"We will present the accounts to the NEPC at the August meeting to find ways to keep the fund's finances in the black," he said.

The Oil Fund now subsidis¬es gasohol E20 at 30 satang per litre, E10 at 25 satang, diesel at 30 satang and biodiesel B5 at Bt1.50. Contributing revenue amounts to Bt3.45 per litre from premium petrol, 25 satang from gasohol 95, Bt3 from octane91 petrol, and Bt0.3033 from liquefied petro¬leum gas.

Energy Minister Poonpirom Liptapanlop said the lower excise on gasohol and diesel would spark higher demand. But she said the ministry would try to keep the fund in the black. She said it would have to wait to see whether the system of contributions needed to be adjusted.