Cabinet To Debate Energy Subsidies, Minimum Wage Hike Today

The Cabinet is expected to approve measures to keep a lid on energy prices, the Bangkok Post cites Energy Minister Supattanapong as saying ahead of today's meeting. Ministers are also expected to give a nod to minimum wage increases.

• "Measures include the extension of the excise tax cut on diesel of five baht per litre which is due to end on Sept 20. [...] Mr Supattanapong said the cabinet will consider how long the reduction should continue," the Bangkok Post reports.
• "Cabinet would also look into household electricity charges and consider a subsidy for the September-December quarter, when the price will rise to 4.72 baht per kilowatt hour (KWh), or unit."
• Supattanapong noted that since mid-2021 the authorities had spent more than THB200bn on subsidising diesel, cooking gas, compressed natural gas and electricity bills. The estimate does not include foregone revenue from the reduced excise tax.
• The Cabinet will also look into minimum wage hike proposals submitted by the national wage committee. It is expected that ministers will approve the increases that average 5.02% to take effect from October 1 as planned.
• The government insists that minimum wage hikes will not have much immediate impact on inflation, while the impact of the increase in electricity charges this month will be limited by new subsidies targeting some users.
• Thailand's CPI inflation remained elevated at +7.86% Y/Y in August, printing well above the central bank's target range of +1.0%-3.0% Y/Y. Although Thailand's inflation rate has been one of the highest in emerging Asia, the BoT has waited with launching a tightening cycle until last month.