The Thai government has formalized a strategic two-stage reduction in ex-refinery diesel prices to provide financial relief to the public and businesses. Following a landmark decision by the Energy Policy and Planning Administration Committee (EPPO) on 23 April 2026, the measures were officially published in the Royal Gazette to ensure transparency and clear up previous misunderstandings regarding how these price cuts are calculated.
To provide clarity on the pricing adjustments, the Ministry of Energy emphasized that the new measures replace previous temporary arrangements. While an initial 2-baht reduction was implemented in early April, the new Royal Gazette announcement establishes a definitive two-phase schedule that incorporates and builds upon those efforts.
The total reduction for the first phase is 5.00 baht per litre, which replaces the existing 2-baht relief. The schedule for high-speed diesel grades (B0, B7, and B20) is as follows:
- Phase 1 (24 April – 9 May 2026): A total reduction of 5.00 baht per litre.
- Phase 2 (10 May – 19 May 2026): A reduction of 3.00 baht per litre (not on top of phase 1).
A primary driver for this intervention was the observation of high refining margins, which averaged 14 baht per litre in early April. Energy Minister Akanat Promphan indicated that the Ministry analyzed actual refinery costs—including transportation and insurance—to determine a fairer price point that returns “excess profit” to consumers.
To ensure long-term equity, the Ministry has requested cooperation from six major refineries to provide transparent data on their operating costs. This data will be instrumental in establishing a more sustainable and fair pricing structure for both the industry and the public moving forward.
The government’s intervention is a direct response to instability in the Middle East, which has caused significant volatility in global oil supply chains and domestic fuel costs. These measures are legally supported by the Royal Decree on Remedying and Preventing Fuel Shortages B.E. 2516 (1973), which allows for emergency price stabilization.
While these cuts provide immediate relief to citizens, they come at a time of fiscal challenge for the Oil Fuel Fund, which is currently approximately 60 billion baht in deficit. The Ministry of Energy aims to manage this debt down to a more sustainable 20 billion baht. To maintain the fund’s liquidity and public confidence, the government is proposing a 20-billion-baht loan, ensuring all borrowing remains within the legal frameworks of the Fuel Fund Act.
