The diesel crisis has had a severe impact, causing transportation costs to surge by 18-20%. Businesses are preparing to adjust prices.

According to transportation operators, the diesel price increase has a direct impact on the cost structure, as fuel accounts for 45-50% of total costs. In principle, every 1 baht increase in fuel price leads to approximately a 3% increase in transportation costs.

Therefore, a single increase of 6 baht would immediately result in a transportation cost increase of approximately 18–20%, a level that many businesses cannot sustain.

Trends in transportation cost adjustments.

The businesses plan to hold discussions to consider adjusting transportation fees to reflect actual costs, based on market mechanisms, and will communicate the approach officially at a later date.

The actual diesel pricing structure.

Considering the total costs, including the compensation mechanisms in the system, the price of diesel that reflects the true cost could be as high as 66 baht per liter, further increasing pressure on the transportation sector.

Perspectives on assistance measures.

The approach of providing assistance through direct compensation payments to businesses is seen as a transparent and easily verifiable method, as well as a quick way to reach the target group.

The issue of using B20 fuel.

• Although B20 fuel is approximately 5 baht per liter cheaper than B7, it still has several practical limitations, such as:
• A cost structure that still relies on the high price of palm oil.
  Engine limitations, particularly in new Euro 5 standard trucks, do not support this application.

As a result, B20 fuel may be suitable for some sectors, such as industry or agriculture, but it is not yet a sustainable primary solution for the transportation sector.

Source: Thairath Online