First costs of diesel subsidie : 600 millions in compensation for retailers

Let’s the party begin !

The Energy Business Department will pay Bt600 million in compensation to oil retailers for their inventories, which will be sold at a lower price on July 25.

Director-general Metta Bantherngsuk said ahead of the cut in excise taxes on gasohol and diesel, 1,700 staff will inspect 15,000 service stations and 100 oil depots nationwide on the evening of July 25.

All service stations will close from midnight on July 24 to 5am on July 25. (Nation)

So friday is the big day. And where those 600 millions will come ? From the Oil Fund… that was created to… pay back the debt created by… gasoline subsidies under Thaksin government… !

Talk about a cavalry !

But don’t worry.

The Oil Fund now earns Bt100 million a month and has about Bt3 billion in reserves. It is financially able to shoulder the compensation and the government would return this and a similar amount when the tax cut ends in the next 6 months.

Now the question is… In 6 months, how the government will “return ” this amount ? Mai pen rai.

There is no free lunch. Only invitations… to be paid later.

Meanwhile… enjoy the non sense : cheaper diesel. For 6 months. Hurrah !