Retail petrol and diesel prices in Thailand jumped by six baht per litre on Thursday morning after the government ended its costly subsidy programme.
The decision, announced late Wednesday by the state Oil Fuel Fund, prompted motorists nationwide to rush to fill up ahead of the 5am price adjustment, leading to long overnight queues at petrol stations.
Under the new pricing, diesel rose by around 18%, while other fuel types recorded smaller increases.
At PTT stations, prices were set at 38.94 baht per litre for high-speed diesel and 54.64 baht for B7 premium diesel. Gasohol 91 was priced at 40.68 baht, gasohol 95 at 41.05 baht, E20 at 36.05 baht and E85 at 32.79 baht. Premium gasohol 95 reached 52.04 baht, while gasoline 95 stood at 49.64 baht per litre.
Authorities said subsidies had become financially unsustainable amid rising global oil prices driven by the Middle East conflict. Instead, the government will introduce targeted support measures for vulnerable groups, including low-income consumers, farmers and transport operators.
Finance Minister Ekniti Nitithanprapas noted that prolonged price controls had distorted the market, encouraged hoarding and placed unnecessary strain on public finances.
Thailand’s diesel consumption typically averages 65 million litres per day, but has surged to between 85 million and 100 million litres daily since the onset of the conflict. Officials attributed the spike largely to large-scale stockpiling rather than routine consumer demand, with many stations reporting shortages despite assurances of sufficient national reserves.
The Oil Fuel Fund has spent around 20 billion baht over the past three weeks to maintain price caps. While borrowing was considered to offset losses, authorities ultimately deemed it unsustainable.
According to Standard Chartered economist Tim Leelahaphan, the government has roughly 300 billion baht of remaining borrowing capacity. During the 2022 energy crisis following Russia’s invasion of Ukraine, Thailand spent about 270 billion baht on fuel subsidies and related tax measures.