News Forum - Fuelling fears: Thai diesel price hike won’t ignite retail inflation

[Thaiger]

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) stated that a potential increase in domestic diesel prices, which could surpass 30 baht a litre following the termination of the Oil Fuel Fund subsidy scheme on March 31, is unlikely to prompt manufacturers to raise the prices of their goods. Prime Minister Srettha Thavisin … …

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[MrStretch]

These government officials are whistling in the wind.

This will definitely result in manufacturers increasing their prices.  This misguided belief that they will absorb these costs, "as the economy is still on the road to recovery" is nothing more than wishful thinking. 

Businesses stay in business by being profitable, and any excuse to increase or maintain profit is a good decision, from their point of view.