Cabinet Approves 200 Billion Baht Loan for Oil Fund to Bolster Liquidity and Stabilize Energy Prices
Thailand's cabinet approved a 200 billion baht loan for the Oil Fund to pay fuel subsidies and stabilize energy prices amid global supply disruptions and rising costs affecting consumers nationwide.
On April 28 at Government House, government spokesperson Ratchada Thanadirek announced that the cabinet has approved a 200 billion baht borrowing authorization for the Oil Fund (Office of the Energy Fund Management) to enhance liquidity and manage fuel costs during the ongoing global energy crisis. The conflict among the United States, Israel, and Iran since late February has reduced fuel supplies in global markets and driven oil prices higher, directly impacting retail prices and living costs for Thai consumers. As of April 5, the Oil Fund faced a negative balance of approximately 53 billion baht, mostly from outstanding fuel subsidy compensation owed to fuel traders totaling around 56 billion baht, creating liquidity shortages for operators and risking domestic supply shortages. The Energy Fund Management Committee approved the proposal for cabinet consideration on April 10, recommending the 200 billion baht loan be disbursed between June and August 2025, with repayment from July 2027 through August 2030, enabling the fund to stabilize fuel prices and respond effectively to energy sector volatility. The latest fund status as of April 26 showed a deficit of 62.364 billion baht, comprising a petroleum account deficit of 24.143 billion baht and an LPG account deficit of 38.221 billion baht.
