BANGKOK, Thailand – Thailand has approved a new four-year plan for managing fuel crises, introducing higher price and market-volatility thresholds for government intervention while encouraging greater use of domestically produced biofuels to reduce reliance on imported crude oil.
The Cabinet approved the Fuel Crisis Response Plan 2026–2029 and the Oil Fuel Fund Strategic Plan 2026–2029, proposed by the Ministry of Energy and the Oil Fuel Fund Office. The plans provide a framework for maintaining domestic fuel price stability during major disruptions.
Under the new crisis framework, the Oil Fuel Fund can be used to subsidize or compensate fuel prices under three circumstances.
The first covers sharp price increases that affect household living costs. Government intervention can be considered when diesel or gasoline prices exceed 30 baht per liter, while LPG can qualify when the cost of gas from domestic separation plants exceeds the import price or the retail price rises above 423 baht per 15-kilogram cylinder, up from the previous 363-baht threshold.
The second covers major market volatility. Refined oil prices must rise or fall by more than US$10 per barrel within one week, compared with the previous US$5 threshold, or domestic retail prices must move by more than 2 baht per liter in one week, compared with 1 baht previously.
For LPG, the new trigger is a global market price movement of more than US$35 per ton in one month, while domestic retail prices must rise or fall by more than 1 baht per kilogram within one month. The third situation covers potential fuel shortages that could affect economic activity, quality of life and public welfare.
The new Oil Fuel Fund management rules also give greater consideration to fuels blended with biofuels produced domestically from agricultural products. Authorities say greater use of domestic resources can help reduce exposure to volatile global crude oil markets while supporting energy security and agricultural incomes.
The strategy also separates the Oil Fuel Fund into distinct oil and LPG accounts, preventing subsidies from being transferred between the two groups. During prolonged crises, price support will focus primarily on diesel and LPG. The plan also calls for the fund to accumulate revenue when global oil prices fall, building liquidity that can be used during future price shocks.
The changes come amid continuing global energy-market uncertainty. The Energy Ministry has said Thailand is working to diversify oil supplies, improve procurement flexibility and strengthen reserves to reduce the impact of external market volatility. Thailand is also promoting greater use of domestically available energy resources as part of a broader effort to reduce dependence on imported fossil fuels.
