Subsidies Reduced, Thailand Raises Fuel Prices Starting Today

BANGKOK, KOMPAS.com – The Thai government is raising retail fuel prices by 6 baht, equivalent to approximately Rp 3,090 (assuming an exchange rate of Rp 515 per baht), per litre starting today, Thursday (26/3/2026).

This policy comes amid a surge in global oil prices due to geopolitical tensions in the Middle East and pressure on the liquidity of the country’s energy stabilisation fund.

Quoting Nation Thailand, the Oil Fuel Fund Management Committee approved the reduction in fuel subsidies for diesel and petrol groups on Wednesday (25/3/2026).

This step was taken after diesel prices in the Singapore market jumped sharply from US$198.20 per barrel on 23 March 2026 to US$242.91 per barrel.

The ongoing rise in world oil prices has further exacerbated the burden on the energy stabilisation fund, which has been covering the fuel subsidies.

The committee assessed that price adjustments are necessary to reduce pressure on the fund’s liquidity.

Additionally, the price increase policy also aims to align Thailand’s domestic fuel prices with those of neighbouring countries, including Malaysia.

The significant rise in diesel prices is feared to trigger a chain reaction affecting the industrial sector and the broader economy.

The Federation of Thai Industries (FTI) has warned that this surge could increase logistics costs by 20 to 25 percent.

The industry organisation also highlighted the major impact on energy-intensive sectors such as steel, cement, and chemicals. In addition to the fuel price increase, these industries are also facing pressure from rising electricity tariffs.

The FTI assesses that the combination of rising energy costs could narrow business margins and affect the competitiveness of the domestic industry.