BANGKOK, Thailand – Minister of Energy Akanat Promphan has instructed officials to closely monitor fuel prices during the Songkran festival and to have agencies accelerate price reductions at service stations. The Ministry is also actively seeking new crude oil reserves to address potential supply disruptions due to rising tensions in the Middle East.
The Minister identified two main priorities, which are maintaining adequate fuel supplies for holiday travel and increasing domestic crude oil reserves. He acknowledged that regional instability remains a risk, but noted that a sharp drop in Singapore diesel prices from 300 USD to about 200 USD per barrel has improved the domestic outlook.
This reduction enables the government to consider lowering retail prices to help reduce living costs. The Minister has also asked refineries to cut ex-refinery prices by about 2 baht per liter and is seeking new crude oil sources worldwide through Government-to-Government (G2G) agreements.
The Minister reported significant improvement in the Fuel Fund’s financial position. Daily losses have fallen from a peak of 2.5 billion baht to between 400 and 500 million baht. Although the fund still has a cumulative deficit of nearly 60 billion baht, current liquidity is still manageable, and there is no immediate need for loan guarantees from the Ministry of Finance.
The Ministry of Energy is closely monitoring the Middle East crisis, as further escalation could cause significant volatility in global energy markets. (NNT)
