Thailand will slash the excise tax on diesel for three months to lessen the impact of soaring global crude prices as inflation emerges as the latest threat to the economic recovery.

The cabinet agreed to cut the levy by 3 baht ($0.09) per liter until May 20, Thanakorn Wangboonkongchana, a government spokesman, said in a statement. The lower tax will take effect once the decision is published in the Royal Gazette, he said.

The move is aimed at easing the burden on Thailand’s state-run oil fund, which has run out of cash to subsidize retail fuel sales after the recent run-up in crude prices. The move may also placate the nation’s truckers, who have been threatening a nationwide strike demanding urgent steps to rein in prices.

Like most other net oil importers, Thailand has struggled to cope with crude’s rally to the highest level since 2014, which is impacting both retail inflation and business costs. The central bank warned last week that average headline inflation may top its forecast of 1.7% this year due to rising costs of energy and fresh food.

Consumer prices rose 3.23% in January, the fastest pace since last April and above the central bank’s 1%-3% target range, issued in December. 

Thailand’s government will lose an estimated 17.1 billion baht from the three-month cut in the excise duty, Thanakorn said at a briefing after the cabinet meeting.  

“The excise tax cut will hopefully help the overall economy and sectors such as manufacturing, agriculture, tourism and services, and transportation,” he said.