PATTAYA, Thailand – Thai fuel prices surged on Tuesday as PTT and Bangchak implemented significant increases. Gasoline and gasohol prices jumped by 2.00 THB per liter, while diesel rose by 1.80 THB, reaching the 33 THB ceiling.
Mr. Pornchai Jirakulpaisarn, Director of Policy and Planning at the Oil Fuel Fund Office (OFFO), explained that the Oil Fuel Fund Executive Committee resolved to reduce diesel subsidies.
This decision was driven by escalating tensions in the Middle East, which caused Singapore diesel prices to skyrocket from $92 to $223 per barrel.
This price surge added 26 THB per liter in costs, forcing the fund to shoulder a massive subsidy burden of nearly 2.4 billion THB daily, or roughly 70 billion THB per month. Therefore, urgent action was required to slash this burden and maintain the fund’s liquidity for long-term price stability.
Furthermore, the adjustment aims to balance regional prices. With neighboring Malaysia recently raising its diesel price from 32.40 THB to 38.70 THB per liter on March 16, keeping Thai prices artificially low would incentivize cross-border fuel smuggling and hoarding for speculation. (TNA)
