Bangkok, April 29 -- The cabinet of Thailand has approved a 20-billion-THB (approximately 610 million USD) loan for the Oil Fuel Fund Office (OFFO) in a bid to stabilise domestic fuel prices and address mounting liquidity pressures.
As of April 5, the Oil Fuel Fund of Thailand reported a deficit of about 53.2 billion THB, largely due to unpaid compensation owed to fuel traders. This has led to liquidity shortages among businesses, affecting their ability to procure fuel and raising concerns over potential domestic supply disruptions.
Under the approved plan, the Thai Ministry of Finance will not guarantee the new loan. Instead, the OFFO will be responsible for repaying the debt using the fund's own revenue. Loan agreements are expe...