On April 23, 2026, the Energy Policy and Planning Administration Committee (EPPO), chaired by Energy Minister Akanat Promphan, reached a landmark decision to significantly reduce fuel prices at the refinery level. The move is designed to alleviate the financial pressure on the public by addressing high refining margins.
The committee approved a total reduction of 5 baht per litre at the refinery gate. This decision builds upon a previously 2-baht cut in early April, adding an additional 3 baht per litre to the relief measure. The new pricing is expected to take effect on April 24, 2026, following its publication in the Royal Gazette, and will remain in place until May 9, 2026.
The primary driver for this intervention was the spike in refining margins, which reached an average of 14 baht per litre in early April. To determine a fairer price, the Ministry of Energy analysed the actual costs incurred by refineries—such as insurance and transportation—and decided to return the “excess profit” to consumers.
Looking ahead, the Ministry has requested cooperation from all six major refineries to provide transparent data on their actual operating costs. This data will be used to establish a more equitable price structure for both the industry and the public in the long term.
The government is already planning its next steps for after May 9. Minister Akanat indicated that the committee will meet again to consider an additional 3 baht per litre reduction for diesel.
However, these measures come at a time when the Oil Fuel Fund is facing significant financial strain. The fund is currently approximately 60 billion baht in the red. The Ministry’s goal is to manage this deficit down to a more sustainable level of 20 billion baht to ensure long-term stability and maintain public confidence. To bolster the fund’s liquidity, the Ministry of Energy intends to propose a 20-billion-baht loan to the government, ensuring that the borrowing remains within the legal limits set by the Fuel Fund Act.
Stocks in the Thai market that could be impacted by this measure are refining companies such as Thai Oil Public Company Limited (SET: TOP), Star Petroleum Refining Public Company Limited (SET: SPRC), Bangchak Corporation Public Company Limited (SET: BCP) and IRPC Public Company Limited (SET: IRPC). So far, their stock prices have declined 11.3%, 5.6%, 10.8% and 18.6%, respectively this month.
