On April 7, 2026, Mr. Akanat Promphan, Thailand’s Minister of Energy, stated that the Energy Policy Administration Committee (EPAC), of which he is chairman, exercised its authority under the Emergency Decree on Remedy and Prevention of Shortage of Fuel Oils, B.E. 2516 (1973) to regulate refinery gate prices.
In recent years, the government has primarily relied on the Oil Fuel Fund mechanism to ease the financial burden on consumers. However, Mr. Akanat noted that this new approach, which has never before been implemented in Thailand, will utilize Singapore’s reference market prices to determine a “discount factor” to reduce refinery gate prices.
According to Mr. Akanat, EPAC reviewed data from March and resolved to decrease refinery gate prices of B7 and B20 diesel by THB 2. For April, given that refinery margins are projected to rise compared with March, the committee will reevaluate the discount using data from the first week of April to determine if the 2-baht reduction needs further adjustment.
The minister extended his appreciation to refinery operators for their understanding and emphasized that EPAC will closely manage the situation to prevent oil shortages. While acknowledging the potential impact on refinery revenue, he assured that measures would be taken to ensure the liquidity of affected businesses.
Regarding retail oil prices, official announcements and publication in the Royal Gazette are required before changes take effect, a process expected to be completed by April 8, 2026. Once the measure is enacted, the Oil Fuel Fund Executive Committee will convene to decide how the refinery price cut will be reflected at service stations for both B7 and B20 diesel.
The Ministry has also coordinated with service stations to install B20 nozzles for truck operators, along with providing special compensation to offset cost burdens that could otherwise be passed on to consumer goods. The target is the installation of approximately 100 service stations along major highways at intervals of every 100 kilometers by April 20, 2026, with further expansion planned.
Users of B20 diesel will benefit from a “double discount”: a refinery gate price reduction and additional compensation from the Oil Fuel Fund, with higher compensation rates than those offered for B7 diesel.
