Thailand’s Oil Fund Cuts Subsidies and Raises Fuel Prices by 6 Baht

The Oil Fuel Fund Management Committee has raised fuel prices by 6 baht per liter due to rising global oil prices and significant diesel costs, while planning support for vulnerable groups.

Key Points

• The Oil Fuel Fund Management Committee approved a 6 baht-per-liter increase in diesel and gasoline subsidies, effective March 26, amid rising global oil prices driven by Middle East tensions.
• Diesel prices in Singapore have surged, pressuring domestic pricing. The Fund has faced over 2.5 billion baht in daily subsidy costs, prompting officials to align domestic prices with neighboring countries to deter smuggling and stockpiling.
• The government is preparing support measures for vulnerable groups and businesses while urging efficient energy use as the country faces ongoing volatility in global energy markets.

The Oil Fuel Fund Management Committee has approved a reduction in subsidies for diesel and gasoline, resulting in a 6 baht-per-liter increase across all fuel types as global oil prices continue to rise. The price adjustment, effective today (Mar 26), comes amid escalating tensions in the Middle East, which have driven sharp increases in international fuel prices.

Diesel prices in the Singapore market have surged significantly, adding pressure to domestic pricing. The Oil Fuel Fund has been absorbing subsidy costs of more than 2.5 billion baht per day, placing a strain on its financial position and prompting authorities to act to preserve liquidity for long-term price management.

Officials said the adjustment also aligns domestic fuel prices more closely with those of neighboring countries, where fuel costs have already risen. Maintaining lower prices had raised concerns over cross-border smuggling and stockpiling, which could further strain national resources.

The government is now preparing support measures to ease the impact on vulnerable groups, transport operators, farmers, and businesses. Authorities are also urging the public to use energy efficiently as the country navigates ongoing volatility in global energy markets.

Source : Thailand’s Oil Fund Cuts Subsidies , Raises Fuel Prices by 6 Baht

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