BANGKOK, Thailand – Thai motorists began paying 0.85 baht more per litre for all types of fuel on August 12, following a decision by Thailand’s Oil Fuel Fund Executive Committee (OFFO) to raise retail fuel prices amid surging global oil prices and mounting pressure on the country’s fuel fund.
The decision followed stalled negotiations between the United States and Iran over measures to ease tensions and restore full shipping through the Strait of Hormuz. The lack of progress increased concerns over potential disruptions to global crude oil supplies, pushing international fuel prices higher.
Singapore market diesel prices surged above US$160 per barrel on August 11, while gasoline prices rose above US$116 per barrel. At the same time, the Oil Fuel Fund was facing compensation costs of approximately 343 million baht per day, putting further pressure on its liquidity. The fund’s deficit had exceeded 72.26 billion baht. Authorities said the price adjustment was necessary to reduce the fund’s financial burden and maintain sufficient liquidity to help stabilise domestic fuel prices during continued volatility in global markets.
Under the new rates, regular diesel receives an increased subsidy of 0.91 baht per litre, bringing the subsidy to 5.39 baht per litre and the retail price to 37.54 baht per litre. Diesel B20 receives an additional 0.70 baht subsidy, bringing the total subsidy to 10.08 baht per litre and the retail price to 32.54 baht. Premium diesel is subject to a 1.50 baht-per-litre collection.
For gasoline and gasohol, the fund collection on gasoline was reduced by 0.38 baht to 6.58 baht per litre, resulting in a retail price of 45.83 baht. Gasohol 95 receives an additional 0.27 baht subsidy, bringing the subsidy to 0.70 baht per litre and the retail price to 36.84 baht. Gasohol 91 also receives a 0.27 baht increase in subsidy, with the retail price rising to 36.47 baht per litre. The subsidy for Gasohol E20 increases by 0.16 baht to 4.52 baht per litre, with a retail price of 31.84 baht, while the E85 subsidy is reduced by 0.50 baht to 3.67 baht per litre, resulting in a retail price of 27.78 baht. The new Oil Fuel Fund rates took effect on August 12.
Authorities are also urging households, businesses and other sectors to use energy efficiently and only when necessary, saying reduced consumption would help lower individual expenses, ease pressure on the country and strengthen the fund’s ability to stabilise fuel prices in the future. (TNA)
