Supavud backs targeted fuel tax cuts for farmers, urges swift and time-limited action
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Supavud Saicheua, chairman of the National Economic and Social Development Council, said on the Inside Thailand programme that he agrees with the approach of Deputy Prime Minister and Finance Minister Eknit Nitithanprapas to provide targeted energy price relief, including excise tax cuts if necessary, rather than broad-based cuts to taxes on all types of fuel. Supavud said the tax should be held steady because the geopolitical situation affecting Thailand has not changed, and stressed that once taxes are cut they are hard to raise again. He proposed three principles for short-term policy: act promptly, target the groups most directly affected, and do not keep measures in place for long, because that would add to the government's burden. If tax measures are needed, the government is considering focusing on certain fuels, such as gasohol E20 and diesel B20, which contain high levels of ethanol from sugarcane and cassava and biodiesel from palm oil, so that the benefits of the tax cut reach Thai farmers. Eknit said on September 21, 2026, that the government has three main tools for managing energy prices: the Oil Fuel Fund, seeking cooperation to use excess refining margins to help lower oil prices, and cutting excise taxes on oil. But it has not yet chosen to use the tax cut because it would immediately reduce state revenue while spending remains high, so the impact on the fiscal position must be considered at the same time.