BANGKOK, Thailand – Shell has raised retail fuel prices in Thailand as global oil markets react to escalating tensions in the Middle East. The company increased diesel prices by 4.20 baht per liter and gasohol by 1.50 baht per liter, with the adjustments taking effect at 6:00 a.m. on March 3.
To cushion the impact on consumers, the Oil Fuel Fund is subsidizing diesel at 0.74 baht per liter, keeping the retail price capped at no more than 30 baht per liter. The fund currently holds reserves of about 20–30 billion baht. The Ministry of Energy has set up a war room to monitor global developments and has temporarily suspended oil exports to safeguard domestic supply amid price volatility.
Authorities said diesel prices can remain stable for at least another month if global crude oil prices stay within the 100–110 US dollars per barrel range. If prices rise to 120–130 dollars per barrel, subsidies may be gradually reduced, allowing domestic diesel prices to increase in increments of 0.50 or 1 baht at a time. Gasoline prices will continue to follow market conditions, though limited intervention may be considered if volatility intensifies and the fund maintains sufficient liquidity. (NNT)
