Democrats Slam Government's Failed Oil Crisis Management
Democrats criticized the government's oil fund mismanagement, revealing that retail diesel prices rose despite wholesale costs dropping nearly 2 baht per liter, while the fund's nearly 100-billion-baht debt continues burdening consumers.
On September 25, Democrat Party member Trirut Sirijantaropass, along with the party's energy economic team and energy committee advisors, held a press conference about domestic oil prices, stating that Thailand's oil pricing structure is now showing "clear abnormalities." The party noted that while wholesale costs have decreased, retail prices have increased.
Trirut revealed the latest oil price data showing that on September 24, the refinery gate price for B7 diesel was 37.49 baht per liter, yet retail prices stood at 41.44 baht per liter. On September 21, the refinery gate price was 39.33 baht per liter while retail prices were 40.69 baht per liter. This means that despite wholesale costs dropping nearly 2 baht per liter, retail prices rose almost 1 baht per liter. "This is an abnormality that demands explanation," Trirut said. "Today's wholesale cost is cheaper than four days ago, yet consumers are paying more. Market mechanics say prices should fall."
The Democrats attributed the discrepancy to failed management of the oil fund, particularly the daily adjustments to compensation rates. When global oil prices drop, the fund reduces compensation to repay debt, preventing retail prices from falling accordingly. When global prices rise, retail prices increase immediately, leaving consumers with no real benefit from falling oil costs.
Trirut stated that proper oil fund management should minimize price volatility for the public by reducing retail prices when refinery gate prices fall and setting aside reserves, while using the fund to stabilize prices when wholesale costs rise. The accumulated debt of the oil fund, approaching 100 billion baht, represents a risk to national energy stability. Under the 2019 Oil Fund Act, the fund cannot go bankrupt, forcing the state to implement measures like budget injections, additional borrowing, restructuring collection mechanisms, or reducing compensation—all burdens affecting the public long-term.
The party also noted that September 24 marked the deadline for ending biofuel subsidies from the oil fund under Section 55 of the 2019 Oil Fund Act, yet the government continues compensating biofuel through the oil fund, risking legal violations. Democrats believe supporting farmers producing biofuel feedstock like palm oil, sugarcane, and cassava is important for national energy security, but the entire burden should not fall on the oil fund or consumers at the pump. The party proposes direct government support for farmers and consideration of energy transition borrowing to fund domestic biofuel production, reducing energy import dependence and promoting grassroots economy.
