Struggling consumers urge cut in fuel excise tax

Consumer groups have called for cuts to fuel excise taxes, arguing that recent retail price reductions fail to address the structural causes of high oil prices. The Thailand Consumers Council's subcommittee on public services, energy and environment, the Thailand Watch Foundation, the Thai Energy Reform network and the Butterfly Effect group on Sunday jointly urged Prime Minister Anutin Charnvirakul to order an immediate cut in fuel excise taxes, describing the recent price reductions as temporary and misleading measures that mainly benefit oil refiners. The coalition referred to Mr Anutin's July 7 directive instructing Energy Minister Akanat Promphan to lower retail fuel prices after global oil prices declined. Following the order, the Energy Ministry approved price cuts of 2.56 baht per litre for diesel and 2.51 baht per litre for benzene and gasohol, effective July 8. However, it argued that fuel excise tax remains a key factor keeping domestic retail fuel prices high. The current rates are 7.50 baht per litre for benzene 95, 6.75 baht for gasohol 95, 6.92 baht for B7 diesel and 5.953 baht for B20 diesel. The coalition also criticised the government's decision to reduce ex-refinery diesel prices by 1.40 baht per litre between July 9 and July 29, saying the measure did not reduce refiners' excess profits because the Oil Fuel Fund had already compensated them for the difference. It added that ex-refinery prices resumed rising almost immediately after the temporary reduction despite falling global crude prices. Their statement also highlighted what it described as long-standing structural problems, including high fuel excise taxes, excessive refinery margins, marketing margins above government benchmarks, a lack of transparency in biodiesel pricing and inadequate regulatory oversight of refinery pricing. In addition to calling for lower excise taxes, the coalition urged Mr Akanat to implement broader structural reforms without delay, warning that postponing action for another month would allow refiners to continue earning excessive profits at consumers' expense. The coalition estimated consumers are paying an extra 800 million baht to 1 billion baht a day because refinery margins remain well above what it considers a reasonable level of no more than US$7 (about 233 baht) per barrel, or roughly 1.40 baht per litre. Subscribe to our newsletters for daily updates, breaking news and exclusive content.