Thailand Uses Refinery Funds to Stabilize Fuel Prices

BANGKOK — 15 July 2026, Thailand will continue using contributions from oil refineries and the Oil Fuel Fund to cushion domestic fuel prices against sharp increases in global markets, Energy Minister Eknat Promphan said at Government House.

Global oil prices have risen sharply over the past week due to escalating tensions in the Middle East, pushing up prices for all types of fuel. Despite this increase, Thailand will continue using existing price management mechanisms to soften the impact on consumers, including reducing refinery gate prices through contributions from domestic refineries and drawing on the Oil Fuel Fund to stabilise retail prices at petrol stations.

"The Ministry of Energy will monitor the situation every day to ensure domestic fuel prices do not rise as quickly or as sharply as global oil prices," Eknat said. He added that any price adjustments would be assessed daily and made gradually rather than through sudden hikes.

Eknat also reassured the public about fuel supplies, stating that Thailand has sufficient crude oil and refined petroleum stocks, with storage tanks holding ample reserves. "I can confirm that Thailand will not face fuel shortages," he said.

The government is balancing market-based pricing with measures to protect consumers from excessive volatility. According to Eknat, the government has already allocated 10.5 billion baht through existing mechanisms to help lower retail fuel prices. When global oil prices declined previously, the government relied primarily on refinery contributions rather than drawing heavily on the Oil Fuel Fund, which was already in deficit before he took office. Both refinery contributions and the Oil Fuel Fund will continue to be used to prevent domestic fuel prices from fluctuating as dramatically as those in the global market.