Global Diesel Crisis Drives Prices Up 75%

Thailand's energy ministry spokesman has reassured the public that domestic diesel reserves remain sufficient amid global price volatility. Deputy Permanent Secretary Veeraphath Kiatfuengfu confirmed that the ministry is closely monitoring the situation and that Thailand's diesel stocks are adequate for both consumers and businesses.

The ministry is appealing for public understanding of current price pressures stemming from the global energy crisis. The primary cause of volatility is policy decisions by major producing nations. Reports indicate that Donald Trump may consider banning US diesel exports after prices surged to $6.50 per gallon—a 75% increase from the previous year, equivalent to approximately 57.15 baht per liter. Such measures aim to control energy prices domestically in the United States.

Russia is also expected to extend its diesel export ban for another month until October 31 because many Russian refineries remain unable to resume normal production following Ukrainian attacks. Russia previously imposed this export ban on July 8, 2025. In 2024, Russia exported 813,000 barrels of diesel daily, and the loss of this supply has inevitably strained global markets.

Although global diesel prices are fluctuating at very high levels, the primary factor is not crude oil prices alone but rather tight diesel supply conditions resulting from reduced refining capacity and declining diesel volumes in global markets, causing prices to rise rapidly.

The energy ministry remains committed to using its fuel oil fund mechanism to manage and control prices, minimizing the impact on people's cost of living. The ministry is also reducing refinery gate prices and promoting alternative fuels such as B20. The ministry appeals to the public to understand the crisis and work together to conserve energy so the country can navigate this challenging period.