Mr. Auttapol Rerkpiboon, Minister of Energy, addressed the situation of Thailand’s Oil Fuel Fund, stating that currently, compensation payments to stabilize energy prices average about THB 700 million per day. Today, there will be a meeting with relevant agencies to monitor the situation and evaluate the next steps.
Mr. Auttapol stated that global oil price trends depend directly on the state of war. If the situation eases, prices are expected to decrease because the world’s production capacity remains sufficient. However, conflicts and transportation issues are key factors driving prices up at present.
When asked about the possibility of further infrastructure attacks, such as Iran targeting the Baku–Ceyhan pipeline, Mr. Auttapol noted the situation must be closely monitored by the hour. A War Room has been set up to manage and assess risks, and oil procurement plans are being adjusted to reduce dependence on the Middle East, seeking alternative sources of oil on a continual basis.
The Minister of Energy pointed out that the Oil Fuel Fund acts as a mechanism to stabilize domestic energy prices. When prices are high, the fund intervenes with price compensation. However, if global oil prices fall, the fund’s burden will decrease accordingly. Conversely, if the situation intensifies, the fund’s burden will rise along with market forces.
Regarding the regulated retail diesel price kept at THB 29.94 per liter, Mr. Auttapol stated that in some areas, retail prices are as high as THB 40.50 per liter, especially at small stations or independent pumps not supplied directly by Section 7 traders but via middlemen or jobbers, which increases costs. Today, the Ministry of Energy will discuss actual oil demand and ask traders to prioritize supply to end-users, with possible short-term delays for distribution via middlemen.
For oil sales to the agricultural sector, Mr. Auttapol stated that sellers may continue to supply regular customers and farmer groups. However, in cases where non-regular customers bring large containers to buy oil, sales will need to be considered on a case-by-case basis. The occasional shortages are due to demand almost doubling, affecting transportation cycles.
Regarding additional borrowing by the Oil Fund, Mr. Auttapol noted that if necessary, the Ministry of Finance must guarantee the loans and Cabinet approval is required. Preparations have been made, including some cash on hand in the fund. If an urgent situation arises, further legal procedures may require approval from the Election Commission.
Mr. Auttapol emphasized that the country’s oil supply remains sufficient. The Oil Fuel Fund can manage energy prices for about 15 days, after which the situation will be reassessed.
