The government will let retail fuel prices rise gradually from today but will heavily subsidise the pump price of standard diesel.

The diesel price would rise by less than one baht per litre on Wednesday morning and would be capped at 33 baht per litre. 

Diesel had been at 34.94 baht per litre during the tenures of two previous governments, and will gradually increase the price towards that point, a deputy minister said.

In addition, the government would supply B20 diesel to the agriculture, industrial and transport sectors. It would be cheaper than B7 diesel by four or five baht per litre.

The Oil Fuel Fund Office said on Monday that it was subsidising high speed diesel by 20.36 baht per litre, gasohol 95 and 91 petrol by 9.73 baht per litre, gasohol E85 petrol by 2.28 baht per litre and gasohol E20 petrol by 11.06 baht per litre.

The minister said that as of Tuesday Thailand had adequate fuel reserves for 96 days’ use. Current shortages at local petrol stations resulted mainly from deliveries being unable to meet rising demand.

He reaffirmed that Thailand would not face fuel shortages. The government planned to buy crude oil from Russia, if needed.