BANGKOK, Thailand – 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. (NNT)
