Why We have to subsidize Diesel's price for mass luxury cars like BMW or Mercedes cars. 🤔
I have heard almost of mass luxury car buyers prefer to Diesel cars than Benzene cars if have a choice of engine when I passed car's offer events.
It is 1 of policies distortion that have created by Govt. and economy has painful from their policies.
#Econ101 #SiamStr #PolicyTH #Oil #Diesel
Probably for other mass transport.
If Govt. wants this, We can use a specific policy to the target.
In Thailand, when Diesel’s subsidization is activated, Benzene users have more painful because the companies have to maintain their profit by increasing Benzene’s price and Govt. has marked up Benzene’s price to cap Diesel’s price.
The most of painful Benzene users is people who use motorcycle for a daily transportation because they will not able to be pick-up car owners and Thailand public transportation in up-country areas is worse than some country that Thailand wants to be such as Japan or Singapore.
