Fuel package in the pipeline

Ministry hopes to stave off higher fares

The Transport Ministry will propose a package of measures to alleviate the impact of rising fuel prices for the transport sector in the hope it will delay fare increases.

Sorapong Paitoonpong, deputy transport permanent secretary, said transport authorities recently called a meeting to discuss relief measures for transport operators in the public and private sectors and agreed to propose a raft of measures to cushion the blow with fuel subsidies.

He said the Department of Land Transport, the Bangkok Mass Transit Authority and Transport Co will seek a fuel subsidy of 2 baht per litre per day capped at 60 litres per day per vehicle for a period of three months.

The proposed subsidy, which is estimated to cost about 3.6 billion baht, is for cargo transport and passenger transport, he said.

According to Mr Sorapong, the ministry will also propose a 90% tax cut for operators of 170,000 taxis, taxi-motorcycles and tuk-tuks. If approved, a decree will be issued.

For water transport, the Marine Department will seek a fuel subsidy for operators of passenger boat services along the Chao Phraya and Saen Saeb canal for three months, which is estimated to cost 2.4 billion baht, he said.

The Marine Department is in talks with the Council of State about its plan to waive inspection and licence fees for electric boats for 10 years to promote the use of electric-powered vehicles, he said.

The State Railway of Thailand will alleviate the impact on cargo operators by capping diesel fees at an average of 29.76-30.00 baht per litre, so the rail agency’s earnings are expected to drop.

In the aviation sector, the Civil Aviation Authority of Thailand (CAAT) will propose a further reduction in jet fuel tax for Thai airlines and domestic carriers for another six months. The current rate of 0.20 baht per litre is set to end on June 30.

Mr Sorapong said the ministry has instructed transport operators in the public sector to cap their fares for as long as possible to help people struggling with the rising cost of living.

But if energy costs continue to rise and affect operation costs, the ministry will review the policy, he added.