Oil Fund Deficit Exceeds 100 Billion, No Borrowing Yet
Thailand's fuel oil fund has slipped into a deficit exceeding 100 billion baht as world oil prices pass their peak. Officials say they will not borrow money unless absolutely necessary, preferring to avoid interest burdens on the public and instead support domestically produced energy. The fund still holds about 10 billion baht in cash reserves and continues to subsidize diesel at around 2 baht per litre.
World oil prices have passed their peak, and the fuel oil fund is now in deficit exceeding 100 billion baht. Energy Ministry spokesperson Phongphon Yodmuangcharoen said there is currently no need for the Fuel Oil Fund Management Committee to borrow money to increase liquidity, even though the deficit has surpassed 100 billion baht, because they do not want to impose interest costs on the public. He stressed that the fund will not borrow unless there is truly no other option, as borrowing would bring long-term interest burdens, and if possible they will avoid borrowing altogether and instead promote domestically produced energy, even if it is more costly, so that money stays with farmers and domestic supply chains.
The Energy Ministry assessed that world oil prices have already passed their peak, despite ongoing geopolitical conflicts and wars, so they will continue to monitor the situation closely. Borrowing remains a studied option, and the final decision will be made by the executive board, to be used only in a true 'no options left' scenario.
Regarding cutting excise taxes on fuel, Deputy Prime Minister and Finance Minister Ekkanit Nitithamaprasad outlined a vision to use excise tax reductions to lower prices for government‑supported biofuels such as B20 and E20, noting that final figures are still pending from the Finance Ministry.
Phailin Foongkiat, acting director of the Fuel Oil Fund Office and director of the Finance and Accounting Office, said the fund still has about 10 billion baht in cash reserves from its cash‑flow management.
Porachai Jirakulpaisal, director of the Policy and Planning Office of the Fuel Oil Fund Office, noted that according to the fund’s daily compensation data as of October 7, 2026, daily expenditures are about 316 million baht, split roughly 289 million baht for oil and 27 million baht for liquefied petroleum gas (LPG) or cooking gas. He added that the current compensation level is appropriate, down from previous levels of 1,000–2,000 million baht per day, and that the fund now subsidizes diesel at about 2 baht per litre, a manageable level compared with the previous high of 26.99 baht per litre on March 25, 2026.
Nevertheless, all actions must follow the contingency plan for fuel oil crises and the strategic plan for the Fuel Oil Fund 2026‑2029, approved by the Cabinet on September 22, 2026, to help the public use fuel at appropriate levels—not too cheap—and to avoid severe sudden impacts, allowing time for adjustment.
