Thailand Approves Measures to Deal with High Energy Prices

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Thailand Approves Measures to Deal with High Energy Prices
23 Mar 2022
7 min read

News Synopsis

Thailand’s cabinet approved a raft of measures along with fuel subsidies to deal with the impact of the high energy prices that were caused by the Russia-Ukraine conflict, the prime minister said.

The measures come after weeks of protests against rising fuel and living costs and will be in place from May to at least July. The government is planning to offer 3.6 million welfare card-holders a monthly subsidy of 100 baht for cooking gas, while 157,000 motorcycle taxi drivers will be given 250 baht a month for fuel.

The contribution rates for employees and employers to the social security fund will also be lowered. Prayuth Chan-ocha, the prime minister of Thailand has also said that the government is working hard on plans to help all the people as much as possible to get the country out of this crisis.

Diesel prices will be limited to 30 Baht per liter until the end of April and will be subsidised thereafter. The price of natural gas for vehicles remains frozen at around 15.6  baht per kg, but some utilities will be reduced between May and August, he said.

The cabinet also agreed to suspend half the 9.3 billion baht debt that thousands of farmers owe to state banks, with the rest to be restructured within 15 years, Commerce Minister Jurin Laksanawisit said in a statement.