Thailand Stockpiles 101 Days of Oil as Global Energy Prices Surge
Thailand maintains 101 days of oil reserves and shields citizens from surging global energy prices through fuel subsidies and price controls amid U.S.-Iran tensions driving costs up sharply.
Thailand's Energy Ministry said it is ready to manage the sharp volatility in global oil and LNG prices, reiterating that the country has sufficient reserves for 101 days of domestic use and will continue protecting electricity rates. Deputy Permanent Secretary Veeraphatthanom Kiatfuengfoo, the ministry's spokesperson, described the severe global oil market turbulence caused by unpredictable U.S.-Iran hostilities, which directly affect worldwide energy supply. The ministry will maintain close monitoring and vigilance. Oil prices in July rose an average of 7-8 U.S. dollars per barrel above June levels, a 10-12% increase. Although neighboring countries have raised retail fuel prices in line with global markets, Thailand continues to use fuel fund mechanisms and refinery price controls approved by the Energy Policy Management Committee (EPMC) to shield citizens from rising living costs. On the security front, Thailand's oil reserves as of July 30, 2025, are sufficient for 101 days of domestic consumption. LNG imports, a critical fuel for electricity generation, have climbed sharply—from approximately 11 dollars per million BTU before the conflict to 18-20 dollars per million BTU today, nearly a 60% increase, as markets price in elevated supply risks. About 20% of global LNG supply depends on transit through the Strait of Hormuz, and prices are expected to rise further as winter demand increases. Veeraphatthanom said the ministry continuously monitors global oil and LNG prices, which remain highly volatile daily. For oil, it uses fuel fund mechanisms and refinery price controls to maintain retail prices domestically. For imported LNG, which affects electricity tariffs, the ministry will employ management strategies including increased gas extraction from the Gulf of Thailand, short-term renewable energy purchases, electricity imports from Laos, and increased operations at Mae Moh power plant to minimize LNG imports and protect electricity rates. The ministry stands ready to implement all necessary measures to reduce the cost of living for the Thai people.
