Done. Abhisit has totally embraced the subsidy logic. The same that Thaksin and Samak used before. For that matter, the current PM is as short sighted as his predecessors… as populist… as full of dirty tricks from the political backroom… as weak… as -let’s speak frankly- dumb as them.
Does Abhisit think seriously that this costly package will change the economy ? Will make the people to love him ? Will allow him to win an election (which he NEVER did) ? Sure he does. But he’s wrong.
The economic crisis will be his Nemesis. Burning cash to burn fossil fuels and meanwhile speaking about “recovery” is just a pathetic move from a meek politician, afraid of his own shadow, who is falling day after day deep into an ocean of ridicule (read here for his latest grotesque mistake).
The government yesterday approved a Bt48-billion energy-subsidy package to lower retail prices of diesel and other types of energy in a bid to win wider public support. […]
The move is aimed at helping ease people’s cost-of-living burden and fuel economic activity during this critical juncture, it said.
-The price of B5 biodiesel will also be reduced by 81 satang a litre, in order to promote the use of this alternative fuel, costing the government Bt421 million a month.
-Second, the government will spend Bt740 million a month over the next year to subsidise LPG, which is imported at Bt25.73 a kilogram but resold domestically at only Bt18.13.
-Third, the government will spend Bt300 million a month to subsidise CNG for another year.
-Fourth, the government will spend Bt1.2 billion over four months to subsidise 30,000 taxis that want to convert to running on NGV. Altogether, the four measures will cost the government Bt27.5 billion.
-Fifth, the government will use Bt10 billion to subsidise the FT surcharge on electric bills.
The government already owes Bt20 billion to Egat for keeping the FT below the agency’s cost, and the year’s extension will add Bt10 billion to the state’s outstanding debt to it. (Nation)