Thailand’s Finance Minister, Ekniti Nitithanprapas, announced on Monday that the government is considering a cut in the excise tax on fuel. The proposed measure aims to ease the cost-of-living burden on the public, which has been exacerbated by the ongoing energy crisis.
According to Ekniti, the government is exploring the tax cut because it has already exhausted nearly all other available options. Previous efforts to stabilize prices and lower fuel costs included reducing refinery margins and utilizing the nation’s Oil Fuel Fund.
If implemented, the tax reductions would specifically apply to blended biofuels, such as E20 and B20, a move intended to provide additional support to Thai farmers.
The Finance Minister emphasized that any potential tax cut would be carefully designed to ensure it does not compromise Thailand’s fiscal position, which he noted remains a key strength monitored by credit rating agencies. In addition to the potential tax relief, Ekniti stated he plans to seek cabinet approval on Tuesday for an extension of the current consumer subsidy scheme.