Thailand Increases Fuel Prices Gradually As Energy Subsidy Pressures Intensify

BANGKOK — Thailand’s government is preparing to increase fuel prices, particularly diesel, gradually from Wednesday, 18 March 2026.

The policy is being implemented amid pressure on national energy subsidy funds, supply distribution disruptions, and global energy market uncertainty.

The price adjustment comes as the government considers options to strengthen energy resilience, including opening negotiations with Russia regarding potential crude oil purchases.

The adjustment will begin with an initial price increase not exceeding 1 baht per litre on 18 March 2026.

Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn confirmed the policy is being undertaken to manage pressure on the national fuel subsidy fund. The Oil Fuel Fund is reported to have run a deficit exceeding 12 billion baht, or approximately Rp 6.3 trillion, through 16 March 2026, whilst the government’s temporary borrowing capacity is capped at 40 billion baht, or roughly Rp 21 trillion.

Phiphat affirmed that the fuel price increase will be implemented gradually to minimise impact on the transport and agriculture sectors.

Additionally, Thailand’s government is reviewing B20 biodiesel pricing to make it cheaper than standard diesel as part of its energy cost burden mitigation strategy.

He also sought to allay public concerns about fuel supply conditions. According to him, Thailand has sufficient fuel reserves for 96 days, with approximately 50 per cent of supply still offshore based on secured contracts.

Although the government has assured adequate supply, dry pump incidents have occurred at several small petrol stations in recent days, triggering public panic and increased fuel demand.

According to Pattaya Mail, Thailand’s Energy Ministry held an emergency meeting with oil industry players and refinery operators to assess the distribution situation and accelerate fuel deliveries to filling stations.