BANGKOK, Thailand – The Energy Policy Administration Committee (EPAC) has approved a temporary reduction in diesel prices by using excess refinery margins to help ease the cost of living for the public. The measure, chaired by Energy Minister Aknat Promphan, will reduce the refinery price of diesel by 2.40 baht per liter for diesel B0, B7, and B20 from July 24 until August 15. The measure is valued at approximately 3.892 billion baht. Aknat said the committee reviewed global oil prices and refinery costs during the first half of July 2026 before approving the measure.
The decision followed a calculation based on criteria established by the committee responsible for reviewing the suitability of fuel cost structures. Based on estimated domestic fuel consumption of 91.03 million liters per day for gasoline and high-speed diesel in June 2026, authorities estimated excess benefits from refinery margins between July 1 and 15 at about 3.892 billion baht. The funds will be used to reduce diesel refinery prices. The committee also approved a draft announcement on the diesel refinery price adjustment and instructed officials to proceed with the required publication process.
Aknat said the reduction aims to ease the financial burden on households and reduce pressure on the Oil Fuel Fund while maintaining market stability and ensuring fair cost transfers to consumers.
The government said the measure was designed to balance public relief with the ability of oil refineries to continue normal operations. Authorities added that the policy considers market conditions and the need to maintain national energy security. The measure uses authority under the Emergency Decree on Prevention and Remedy of Fuel Shortages B.E. 2516, which allows the government to introduce measures covering fuel production, imports, exports, distribution, transportation, storage, and reserve management.
Before this latest round, the government had already used the mechanism four times to redirect refinery margin benefits toward diesel price support, totaling about 10.5 billion baht. Including the latest reduction, the total amount allocated through the measure reaches approximately 14.392 billion baht. However, oil refineries have previously raised concerns over the policy, arguing that refinery margins fluctuate significantly and can sometimes result in losses. Industry representatives have also said Thailand has not faced a fuel shortage that would require the use of emergency measures. The latest diesel price reduction will take effect nationwide from July 24 and remain in place until August 15.
