The National Energy Policy Committee yesterday resolved to suspend the Oil Fund levy on diesel as well as octane-95 and octane-91 petrol, effective today.

The Oil Fund now collects Bt7.50 per litre from octane-95 petrol. This will also affect the excise tax, which is calculated on the overall price.

The octane-95 petrol price will immediately come down by Bt8.02 per litre: Bt7.50 as the contribution to the Oil Fund and Bt0.52 as excise tax. The price of octane-91 will drop by Bt7.17, and that of diesel by Bt3 per litre. After the cuts, octane-95 petrol will retail at Bt39.32 a litre, down from Bt47.34, while octane-91 will drop to Bt34.77 from Bt41.94. Diesel will cost Bt26.99, down from Bt29.99.

Prime Minister Yingluck Shinawatra, chairing the committee's meeting for the first time yesterday, said that the approval of the government policy to reduce the price of petrol and diesel by lowering the levies on these fuels to the Oil Fund has been granted. The matter has now been handed to the Energy Policy and Planning Office (EPPO) for further implementation.

In addition, the meeting approved a study to be undertaken to determine what impact the levy reductions will have on gasohol, and whether the Oil Fund will be used to subsidise alternative energy prices. The outline of the intended study has been forwarded to the EPPO for further consideration.