PATTAYA, Thailand – Thai motorists flocked to gas stations across the country overnight after the government announced a record fuel price hike of 6 baht ($0.18) per liter, effective at 5:00 a.m. on Thursday.
The Oil Fuel Fund Executive Committee decided late Wednesday night, at 10.53 p.m. to slash subsidies for diesel and gasoline, citing a “dire need” to preserve the liquidity of the state’s Oil Fuel Fund amid escalating Middle East tensions.
Long queues of cars and motorcycles were seen snaking out of service stations as residents rushed to fill their tanks before the new rates took effect.
“I was stunned by the 6-baht jump,” said one resident who joined a queue after hearing the news. “We understand the global situation, but we wish the government would phase these increases in more gradually.”
The price hike has raised particular concern among the city’s thousands of delivery riders. “Our earnings don’t adjust with the fuel price,” one rider told reporters, adding that rising costs of living could force many drivers off the road.
The committee noted that diesel prices in the Singapore market—a regional benchmark—surged from $198.20 per barrel on March 23 to $242.91 in just days. Without the adjustment, the Oil Fuel Fund would face a monthly deficit of approximately 80.3 billion baht ($2.4 billion).
Officials also pointed to regional price balancing as a factor. In neighboring Malaysia, diesel prices rose to 39.54 baht per liter on March 16. Authorities warned that keeping domestic prices too low would encourage fuel smuggling and hoarding.
To mitigate the impact, the government said it is preparing relief measures for vulnerable groups, including public transport operators, farmers, and small-scale contractors. (TNA)
