BANGKOK, Thailand – The Ministry of Energy is expediting efforts to relocate windfall profits from oil refineries to help offset the impact of the recent surge in global energy prices.
Permanent Secretary for Energy Prasert Sinsukprasert stated that global diesel prices have increased from about 92 US dollars per barrel to nearly 300 US dollars per barrel, far exceeding the previous peak of approximately 150 US dollars during the Russia–Ukraine conflict.
This price increase has put significant pressure on the Oil Fuel Fund, which now faces a nearly 50-billion-baht deficit. While a 150-billion-baht borrowing facility can temporarily support operations, ongoing volatility remains a concern. Authorities explained that recent price adjustments were needed to maintain liquidity in the funds and prevent sudden price spikes that could lead to hoarding or illegal exports.
The Ministry of Energy has instructed provincial energy offices to increase inspections of fuel stations nationwide before price adjustments. The government also continues to subsidize liquefied petroleum gas (LPG) at about 30 million baht per day to help reduce household and food costs.
Regarding refinery margins, officials explained that pricing follows international mark-to-market practices, and refining margins cover operational costs rather than representing net profit. However, elevated war-related premiums have resulted in excess gains, or windfall profits.
Relevant committees are now reviewing a benchmark refining margin based on a five-year average of 2.43 baht to determine appropriate mechanisms for redistributing excess gains to the public. Initial discussions with major refiners, including PTT and Bangchak, have shown preliminary cooperation, with a proposal expected to be finalized at an upcoming meeting. Measures under consideration include immediate price reductions or targeted assistance for vulnerable groups and the transport sector.
The Permanent Secretary emphasized the need for all sectors to collaborate in addressing the crisis, with the government focusing on balanced measures to protect public interests and reduce the overall burden on society. (NNT)
