Thailand Taps Oil Fund Reserves to Freeze Pump Prices
Thailand's government is freezing petrol and diesel prices for three weeks using 3.89 billion baht from oil reserves, shielding drivers from global crude price spikes driven by Middle East tensions and shipping disruptions.
The Oil Fund Management Committee has approved a subsidy using 3.89 billion baht in excess refinery margins to freeze retail diesel and petrol prices across all grades from 24 July to 15 August 2025. Global crude costs have climbed steeply due to ongoing Middle East conflicts and Red Sea shipping blockades, with Singapore diesel reaching 167.62 USD per barrel and petrol hitting 128.33 USD per barrel on 23 July—equivalent to an 8–10 baht per litre increase in domestic prices over the past one to two weeks.
The fund is deploying a 2.40 baht per litre refinery price cut, approved by the Energy Policy Committee, to act as a shock absorber and prevent rapid pump price increases. Fund officials stated they are managing cost differences efficiently and monitoring global energy volatility closely to sustain retail prices at current levels and ease the cost-of-living burden on citizens.
Authorities acknowledged the severe global energy price volatility and its direct impact on household expenses, and have mobilized all mechanisms—including full refinery margin profits—to maintain stable pump prices in the near term. They also appealed to all sectors to conserve energy where possible to reduce strain on the Oil Fund, which ultimately draws from public resources over the long term.
