Diesel prices will be capped at Bt30 a litre until April 2011, says Thai PM

BANGKOK, March 3 (TNA) - Thai Prime Minister Abhisit Vejjajiva affirmed on Thursday (March 3) that his government will continue to use the state oil fund to subsidise domestic diesel prices, capping them at no higher than 30 baht a litre until the end of next month, to contain a hike of prices of other products on the domestic market.

Abhisit noted that vulnerable crude oil prices on the world market had prompted the Thai government to keep the policy intact until after April 2011--when a thorough review will be conducted and appropriate measures will be implemented based on the updated situation.

In response to a public assessment that rising world oil price is likely to reach 130 US dollars a barrel due to political crisis in the oil-rich Middle East and the North African region, the Thai premier said that the ongoing development is similar to that in early 2008 due to market speculations, not real global demand for oil.

According to the Thai prime minister, the Thai Ministry of Energy has, however, kept monitoring the situation and has prepared measures to deal with any emergency, including an immediate shortfall of global oil supply. (TNA)