Oil crisis : Diesel soon subsidized

Here we go again…

“Diesel is now Bt29.94 a litre. If raised again, the price would exceed the Bt30 a litre level which should spark psychological impacts as diesel accounts for 60 per cent of total fuel consumption.”

Ah ! God knows that “psychology” is important in Thailand !

Therefore, back to the future. When a thai politician is confronted to the oil problem, his ready-made solution is : “Run fast ! Do not look behind. And subsidize”.

It works. It costs a lot, but the suckers will eventually pay. They always do.

“The Energy Ministry will propose three options to handle the skyrocketing diesel prices to the National Energy Policy Committee, which include the scrap of contribution to mass-transit projects.

Cited as the first option is the scrap of the 50-satang-per-litre contribution to the mass-transit development. Secondly, the Oil Fund could cut the compulsory contribution from diesel oil sale by 10 satang per litre. Thirdly, the Oil Fund’s reserves could be used to subsidise diesel price by 30 satang per litre. ” (Nation)

UPDATE

“To ease the hardship of the public in the short run, Finance Minister said he agreed with Energy Minister Poonpirom Liptapanlop’s idea of bringing money from both state energy funds to subsidise local fuel prices. ” (Bangkok Post)

Fools… They all believe, sorry hope, that the high price of oil is an accident, a temporary anomaly. It’s going to be painfull…

UPDATE 2

“Energy Minister Poonpirom Liptapanlop insisted on Thursday that the diesel subsidy will not incur debts, like the previous subsidy policy.” (Nation)

She’s totally stupid (it’s not really a surprise, check her bio). But worse : she thinks that people are going to believe her…

Like a child, she probably believes that money is coming out from an enchanted fountain, surrounded by pink grass and small singing birds. Thai Wonderland…

UPDATE 3
Oil is flying toward 106 USD per barrel ! Check mate.

[if you don't know what the Oil Fund is, read here. And you should also know why oil is the weak point of Thailand, here and there, and why it's a freaking hot political potato too].

UPDATE 7 march
Surapong, Finance Minister says  “ the diversion of money from the Oil Fund from financing mass transit development to subsidise diesel price would be termporary.” (Nation)

Surapong is digging his own hole, with an astonishing consistency.