Thailand PM proposes 400 billion baht emergency loan for energy crisis

Prime Minister Anutin Charnvirakul has briefed the Senate on a proposed emergency decree authorizing the Ministry of Finance to borrow up to 400 billion baht. The measure is intended to address the energy crisis caused by conflicts in the Middle East, which have disrupted energy production and transport routes, specifically through the Strait of Hormuz. This instability has driven up global oil prices, impacting Thailand, which imports nearly 50 percent of its oil from the Middle East.

The 400 billion baht loan will be split into two equal parts: 200 billion baht to provide relief to citizens, farmers, and entrepreneurs affected by rising living costs, and 200 billion baht to accelerate the country’s transition to renewable and alternative energy sources to reduce fossil fuel dependency.

The Prime Minister emphasized that this borrowing is a last resort because existing fiscal tools and the 2026 mid-year budget are insufficient to meet urgent demands. He assured the Senate that the funds would be managed strictly under a framework of fiscal discipline to maintain economic security.