New, higher oil excise rates take effect Wednesday, retail prices unaffected

New, higher rates of oil excise duty and local tax on oil sales came into effect on Wednesday, but they will not impact retail oil prices, as the government has lowered contributions to the Oil Fund to offset the tax increases.

Cabinet Approves Tax Increase to Boost Revenue

The new excise and local oil tax rates were proposed by the Ministry of Finance and approved by the Cabinet during its weekly meeting on Tuesday.

The ministry explained that with global oil prices on a downward trend, the government had the opportunity to raise taxes on diesel and petrol to enhance revenue and strengthen fiscal stability amid global economic uncertainties, including US-led trade conflicts.

Expected Revenue Increase

The Excise Department informed the Cabinet that the revised tax rates would generate an additional 2.9 billion baht per month, or about 34.8 billion baht annually, in government revenue.

The Finance Ministry assured the Cabinet that retail oil prices will remain stable, as the government will reduce the Oil Fund contributions from distributors. This will help maintain current prices until at least the end of fiscal year 2025 (end of September 2025), when oil pricing measures will be reviewed.

Summary of New Excise and Local Tax Rates

95 Octane Benzene (Unleaded):

• Excise: rises from 6.5 to 7.5 baht/litre
• Local tax: rises from 0.65 to 0.75 baht/litre

Gasohol 95:

• Excise: rises from 5.85 to 6.75 baht/litre
• Local tax: rises from 0.586 to 0.675 baht/litre

Gasohol 91:

• Excise: rises from 5.85 to 6.75 baht/litre
• Local tax: rises from 0.585 to 0.675 baht/litre

E20:

• Excise: rises from 5.20 to 6.00 baht/litre
• Local tax: rises from 0.52 to 0.60 baht/litre

E85:

• Excise: rises from 0.975 to 1.125 baht/litre
• Local tax: rises from 0.0976 to 0.1125 baht/litre

High-Speed Diesel (H-diesel):

• Excise: rises from 5.99 to 6.92 baht/litre
• Local tax: rises from 0.599 to 0.692 baht/litre