BANGKOK, Thailand – The Ministry of Energy has stated that prolonged conflict in the Middle East is continuing to drive sharp increases in global oil prices, placing sustained pressure on domestic fuel costs despite recent price adjustments. Deputy Permanent Secretary Veerapat Kiatfuengfoo said the situation has now developed into a global energy strain affecting countries worldwide.
Officials said Thailand has raised domestic fuel prices to better align with global conditions, while continuing to rely on the Oil Fuel Fund to cushion the impact on consumers. Diesel remains heavily subsidized, with support exceeding 19 baht per liter, even after the latest price increase.
The fund is carrying a heavy financial burden, with daily subsidy costs approaching 1.7 billion baht and total support exceeding 38 billion baht since the crisis began. Despite these pressures, the country’s fuel prices remain lower than those in many countries in the region, including Singapore, the Philippines, Laos, and Vietnam, while Malaysia has also sharply raised its prices.
Authorities said discussions are underway with the Ministry of Finance on possible reductions in the fuel excise tax, alongside additional measures to assist vulnerable groups. Veerapat said fuel supply conditions have begun to stabilize after earlier disruptions, with continued monitoring in place, while the government is urging the public to conserve energy as global volatility persists. (NNT)
