Thailand Raises Diesel Prices as Subsidy Fund Cuts Support
Thailand's Oil Fund cut diesel subsidies in September, raising retail prices by 0.75 baht per litre amid global supply pressures from U.S. export restrictions and Russia's export ban.
In September 2025, the Oil Fund management committee voted to cut diesel subsidy compensation. For B7 diesel, the fund compensation was reduced by 0.19 baht per litre, from 4.62 to 4.43 baht per litre. B20 diesel compensation fell by 0.26 baht per litre, from 8.08 to 7.82 baht per litre. These cuts resulted in retail diesel prices rising by 0.75 baht per litre, with B7 diesel reaching 41.44 baht per litre and B20 diesel at 36.44 baht per litre, effective from September 24, 2025.
The fund cited unavoidable pressures from global energy markets. Donald Trump has signalled a potential ban on U.S. diesel exports to control domestic prices, which have surged to 6.50 U.S. dollars per gallon—75% higher than the same period last year, equivalent to about 57.15 baht per litre in Thailand. Russia has also extended its ban on diesel exports until October 31, 2025, following attacks on refineries by Ukraine. Normally, Russia exports around 813,000 barrels of diesel daily.
By reducing subsidies and allowing retail prices to reflect true costs, the fund aims to maintain long-term financial stability. The cuts lower daily fund expenditure to approximately 428 million baht. The committee appealed for public cooperation in conserving energy and understanding the volatile market conditions, noting that such efforts will help reduce the fund's burden and strengthen it for future public support.
