1-9-2023 (BANGKOK) The incoming Thai government has announced its priority to implement policies aimed at stimulating the economy and reducing living costs. The newly appointed premier stated that one of the immediate actions would be capping electric rail service fares at 20 baht. This policy was a key promise made by the Pheu Thai party during the May 14 election.
Srettha Thavisin, a representative of Pheu Thai, highlighted the need for detailed discussions with coalition partners regarding the implementation of these policies. The Department of Rail Transport has already been exploring ways to fulfill the party’s commitment to setting a flat rate fare of 20 baht for trips on Bangkok’s electric train network, according to a source within the department.
Mr. Srettha emphasized the importance of gathering opinions from all ten coalition parties before finalizing the fare cap. Additionally, the proposal to pilot the 20-baht fare policy for low-income individuals will be taken into consideration.
The department has suggested that offering the fixed fee to those holding a state welfare card could be implemented immediately, even though it would require the government to subsidize about 35 baht per ride, amounting to approximately 52,190 baht per day.
Regarding the government’s plan to reduce the price of electricity, Mr. Srettha clarified that the discount would only be applicable from September to December. The decision to eventually lower the price per unit to 4.25 baht, as advocated by industries, is still under consideration.
Currently, the cost of electricity per unit is 4.70 baht, and the discounted price is expected to be no higher than 4.45 baht per unit. The new government is actively determining the extent of the discount that will be offered.
In the meantime, discussions are taking place between Pheu Thai and state agencies regarding the party’s proposal to provide individuals with 10,000 baht each in their digital wallets as a short-term economic stimulus. The implementation of this policy is likely to take place no later than the first quarter of next year.
