BANGKOK, Dec. 25 (Xinhua) -- Thai Ministry of Energy on Wednesday announced a cut in oil price starting from Thursday to Jan. 10 as a New Year gift for the people.

"All retail oil prices will drop by one baht per liter," said Energy Minister Sontirat Sontijirawong, "The State Oil Fund Administrative Committee had already approved reduction in levy collection for the oil fund."

It is the gift for travelers to reduce fuel costs during the New Year holiday, the energy minister said.

"It will cost the oil fund about 87 million baht (2.88 million U.S. dollars) per day; that is 1.3 billion baht (43.1 million U.S. dollars) from Dec. 26 to Jan. 10," said Sontirat, "but it is okay, we don't mind the loss. The oil price cut is a New Year gift for the Thai people."

The energy minister said that after Jan. 10, it is up to the oil traders to decide whether to increase oil prices, depending on the global oil prices.