Thailand fuel price management and volatility

In mid-September 2026, Thailand’s Oil Fuel Fund Management Committee approved a retail price increase of 0.85 baht per liter for all fuel types. This adjustment was driven by geopolitical tensions and attacks on oil tankers in the Middle East, which disrupted global production and increased refining margins. The committee noted that the fund was facing compensation costs of approximately 770 million baht per day.

Following these price shifts, the Thai government implemented measures to mitigate market volatility. The Energy Policy Administration Committee reduced refinery prices for B0, B7, and B20 diesel by 4 baht per liter, effective from September 16 through October 31, 2026.

By late September, diesel prices surpassed the 40-baht per liter threshold, with premium grades exceeding 49 baht. This surge has significantly impacted the transport, logistics, and agricultural sectors. While the government continues to use the Oil Fuel Fund to subsidize costs, the fund’s deficit is reportedly approaching 80 billion baht.

To further support consumers and the agricultural sector—specifically those relying on sugarcane, cassava, and palm oil—Finance Minister Ekniti Nitithanprapas indicated that the government is considering targeted excise tax cuts on E20 and B20 fuels. However, officials noted that any tax reductions must be balanced against the potential impact on government revenue and the country’s fiscal position.