Thai Industry Warned to Brace for Oil Price Volatility

The Federation of Thai Industries warned Thursday that global oil markets remain highly volatile due to Middle East tensions and threats to tanker routes, especially the Strait of Hormuz, creating rapid price swings that Thai businesses cannot control. Although the government is managing domestic energy reserves, businesses must continuously prepare for energy cost fluctuations, particularly if diesel prices stay elevated for extended periods, affecting the entire supply chain from raw material transport through manufacturing, agriculture machinery, construction, and distribution.

Federation President Pimjai Leeissaranukul said prolonged high energy costs will not only raise fuel expenses but cascade through production and shipping costs across the supply chain, especially for small and medium enterprises and logistics companies with thin profit margins. She warned this could impact product prices, consumer purchasing power, and Thai business competitiveness.

Since global oil prices are beyond Thailand's control, businesses should accelerate internal cost management and energy efficiency improvements. Recommended measures include promoting efficient energy use, deploying digital systems for energy monitoring, maintaining machinery and optimizing production processes, investing in rooftop solar systems, improving logistics efficiency, and coordinating with logistics providers to eliminate empty return trips through backhaul systems.

The Federation of Thai Industries and its Energy for Industry Institute stand ready to support members with systematic energy efficiency improvements, including assessments, clean energy technology transfer, and expert coordination. The government should meanwhile lead awareness campaigns with measurable targets, model energy management in state agencies, and offer incentives for small and medium enterprises such as low-interest loans, tax breaks, energy audit support, and investment in high-efficiency machinery, solar rooftops, energy storage, and logistics technology.

Leeissaranukul concluded: "While we cannot control volatile global energy prices, businesses can control energy consumption per unit produced. Energy savings do not mean reducing output—it means producing the same or more goods using less energy, cutting costs and building competitive resilience."