31/03/2011 (Bangkok Post) - The state Oil Fund will go into the red around the end of April if the government continues with its policy to subsidise the price of diesel price to keep it below 30 baht a litre, Energy Policy and Planning Office (EPPO) acting director-general Boonsong Kerdklang said on Wednesday.

Mr Boonsong said he will report to the National Energy Policy Committee, which will meet on April 20, that the Oil Fund will run out if the diesel subsidy policy continues after April.

The fund now has only 1.56 billion baht in reserve, but if future debt repayments are taken into account there will be only slightly more than one billion baht left.

Mr Boonsong said he will recommend to the April 20 meeting of the committee, chaired by Prime Minister Abhisit Vejjajiva, whether or not the diesel price should be gradually increased to reflect the real price on world markets.

"If the government stands firm in continuing to curb the price, the EPPO will have to seek approval from the cabinet to acquire loans from financial institutions to finance the subsidy scheme," he said.

National Palm Oil Policy Committee chairman and Deputy Prime Minister Suthep Thaugsuban said the committee has agreed to maintain the price of palm cooking oil at 47 baht a one-litre bottle for another three months, committee chairman Suthep Thaugsuban said on Wednesday.

Mr Suthep said it would remain fixed until the end of June.

The palm cooking oil shortage situation is now over as adequate supplies of raw palm oil have entered the market, he said.