BANGKOK, Thailand – Thai motorists will not see lower fuel prices at the pump despite a reduction in refinery prices, as the government has instead used the savings to prevent retail fuel prices from rising amid soaring global oil costs. The Oil Fuel Fund Management Committee approved measures on July 24 to use 3.892 billion baht from excess refinery margins to stabilize retail prices for both diesel and gasoline. The decision follows a resolution by the National Energy Policy Committee to reduce refinery prices for B0, B7, and B20 diesel by 2.40 baht per liter from July 24 to August 15.
The savings will not be passed directly to consumers through lower pump prices. Instead, they will be used to offset rising global oil costs and keep retail fuel prices unchanged.
According to the Oil Fuel Fund Office, the measure acts as a “shock absorber,” helping to shield consumers from sharp increases driven by volatile international energy markets. The committee also approved higher subsidies from the Oil Fuel Fund for both diesel and gasoline to maintain current retail prices.
Officials said the fund will continue monitoring global energy markets closely and adjust support measures as necessary while urging the public to conserve energy to help protect the long-term stability of the Oil Fuel Fund. The government said ongoing conflict in the Middle East and disruptions to shipping through the Red Sea have pushed fuel prices sharply higher. On July 23, Singapore diesel prices climbed to US$167.62 per barrel, while gasoline reached US$128.33 per barrel. Without government intervention, domestic fuel prices could have increased by an estimated 8 to 10 baht per liter over the past one to two weeks, placing additional pressure on household living costs. (TNA)
