Thailand Fuel Prices Surge, Authorities Say Market-Driven

By Kenny Teng

BANGKOK, March 31 (Bernama) -- Thailand’s fuel prices rose again on Tuesday, with diesel climbing above 40 baht (RM 4.92) per litre, as the government defended the increase, citing surging global oil prices and mounting pressure on the Oil Fuel Fund.

Director of Policy and Planning at the Oil Fuel Fund Office, Pornchai Jirakulpisal, said the pricing mechanism is anchored to global market movements, with the Oil Fuel Fund Committee meeting daily to set domestic rates.

“Decisions take into account global prices, neighbouring markets, fund liquidity and economic impact,” he told reporters during a briefing at the Joint Management and Monitoring Centre for the Situation in the Middle East on Tuesday.

He said oil prices have become highly volatile, with sharp swings between daytime and night-time trading, requiring close monitoring and alignment with global markets.

Thailand’s retail fuel prices rose on Tuesday (March 31), with diesel up 1.80 baht (RM0.22) per litre and petrol 1.00 baht (RM0.12) higher, effective from 5am, following a late-night decision by the Oil Fuel Fund Management Committee (OFMC).

A check at a Bangchak Corporation petrol station on Tuesday showed Gasohol 95 priced at 42.05 baht (RM5.18) per litre, Gasohol 91 at 41.68 baht (RM5.13), and Diesel B7 at 40.74 baht (RM5.01).

The latest increase followed a sharp overnight fuel price adjustment of 6 baht per litre (RM0.73) introduced by the government four days earlier, which took effect at 5am on March 26 across all fuel types.

Meanwhile, Deputy Permanent Secretary of the Ministry of Energy Veerapat Kiatfuengfoo said oil price movements are driven entirely by global markets and remain highly volatile.

“The committee must rely on closing prices before making decisions, and adjustments are considered on a daily basis,” he said.

He added that the Oil Fuel Fund is currently experiencing an outflow of about 1.5 billion baht per day, with a deficit of 42 billion baht as of March 30.

When asked whether fuel prices could reach 58 baht per litre, Veerapat said this would depend on multiple factors, including global prices, the fund’s position and management capacity.

“While the Oil Fuel Fund helps to stabilise prices, it cannot fully absorb prolonged increases,” he said.

-- BERNAMA