Prime Minister Anutin Charnvirakul said on Wednesday that the public does not need to stockpile fuel, as the government will cap prices for the next 15 days.
His remarks came after the Ministry of Energy announced it would deploy the Oil Fuel Fund to stabilise diesel and petrol prices amid a surge in global oil prices triggered by the ongoing conflict in the Middle East.
Energy Minister Auttapol Rerkpiboon said the decision was made shortly before midnight on Tuesday, following an earlier directive from Mr Anutin to freeze the retail diesel price at 29.94 baht per litre for 15 days.
The Oil Fuel Fund board also agreed to subsidise petrol prices to keep them at current levels, Mr Auttapol said. Gasohol 91 is currently priced at 30.18 baht per litre, while gasohol 95 stands at 30.55 baht.
Major fuel retailers PTT, Bangchak and PT said earlier on Tuesday they would hold prices steady as they have adequate fuel supplies. Shell and Caltex also withdrew price increases they had announced a day earlier.
Global oil prices have risen more than 15% since the United States and Israel launched strikes on Iran on Saturday.
Mr Anutin said the government had consulted with energy-related agencies, while market leader PTT confirmed it would maintain current prices to help ease the cost-of-living burden on the public.
PTT said its strong business fundamentals allow the company to continue delivering solid returns to shareholders while fulfilling its social responsibilities, a balance it believes supports sustainable long-term growth.
“The government has capped oil prices, so there is no need for people to stockpile fuel. Keeping large amounts of fuel at home is dangerous,” Mr Anutin said.
He added that the public should not panic, as the government stands ready to introduce additional measures to cushion the impact of rising energy prices and broader economic effects stemming from the Middle East conflict.
Mr Anutin also warned that oil traders found exploiting the situation by unfairly raising retail prices would face penalties.
As of March 1, the Oil Fuel Fund had a positive balance of 2.5 billion baht. The fund had been in deficit for the past four years due to repeated fuel price subsidies and still carries outstanding debt of about 31 billion baht, which is being repaid through monthly instalments.