Thailand Uses Refinery Funds to Stabilize Oil Prices
Thailand is using refinery revenues and a 10.5 billion baht oil fund to cushion domestic fuel prices against global market volatility sparked by Middle East tensions, with the Energy Ministry pledging gradual adjustments rather than sudden
Energy Minister Eknath Prom-on addressed domestic fuel price conditions on July 15, 2025, at Government House, following recent global market increases sparked by Middle East tensions. He noted that all fuel types had risen sharply over the past week, but Thailand continues using a refinery pricing mechanism to draw refinery revenues and reduce pump prices. The government also manages prices through an oil fund to align with market conditions without the sharp, frequent adjustments of the past. The Energy Ministry monitors the situation daily to prevent rapid or severe price increases tied to world markets.
When asked whether prices would remain stable, the minister said daily assessments are necessary, but any adjustments would be gradual rather than sudden. Oil supply management is also underway. Crude oil stocks remain stable and refined product reserves in storage tanks are nearly full, confirming no fuel shortage. Price management will follow market mechanisms.
Asked what conditions would trigger a price increase, Prom-on said the approach is gradual. Thailand does not constantly track Singapore prices; even when using them as a reference, the government reduces prices by deploying refinery funds. The 10.5 billion baht oil fund is currently being used to subsidize pump prices. When prices fall, the fund sees little drawdown due to prior deficits from before the minister's tenure. The government will continue using both refinery pricing and the fund to prevent prices from fluctuating sharply with global markets.
