Energy prices and subsidies
Where it stands now
Thailand's energy prices are expected to remain high through February 2027, with the Oil Fuel Fund's deficit at 89 billion baht as of October 4, limiting further subsidies. The ex-refinery price of high-speed diesel was cut by 2.40 baht per litre from September 16 to October 31, 2026, but overall prices are still elevated.
How it developed
Newest first
Energy subsidies limited, high prices to persist through cool season
The Energy Policy and Planning Office warns that energy prices will remain high through the end of the cool season (around February 2027) as state subsidies reach fiscal limits. The Oil Fuel Fund's deficit hit 89 billion baht as of October 4, making further subsidy difficult. Diesel and petrol prices are already elevated and expected to intensify during peak demand from January to April.
Oil fund loses ฿5 bn weekly as crisis deepens
Thailand's Oil Fuel Fund is losing ฿700 million daily (≈฿5 billion weekly) and its deficit has reached ฿92 billion as of September 20, driven by subsidies capping diesel at ฿40.69/litre versus a true cost of ฿54.19/litre and LPG at ฿423 per cylinder. The government is considering borrowing another ฿100 billion, but the crisis is tied to volatile Middle East oil prices and the heavily imported energy Thailand relies on.
Thailand cuts diesel ex-refinery price by 2.40 baht/litre
Thailand’s Energy Policy Administration Committee approved a 2.40 baht-per-litre cut in the ex-refinery price of all grades of high-speed diesel (B7, B10, B20), effective September 16 through October 31, 2026, in response to global oil supply disruption from Middle East tensions.
Fuel prices rise, August inflation hits 2.53%, confidence grows
Thailand's August inflation reached 2.53% as diesel and gasoline prices rose by ฿0.70 and ฿0.80 per litre respectively, reflecting the Middle East energy shock. The Fuel Fund deficit widened to ฿83.291 billion, yet consumer confidence is reported as increasing.