Photo Credit: Thailand-Construction.com
Thailand’s Oil Fund has presented four urgent issues to the Ministry of Energy, including a review of the diesel price cap set at 30 baht, updates to crisis management plans, and measures related to biofuel subsidies. The Oil Fuel Fund Office (OFFO) highlighted the need for prompt policy actions to ensure effective management of oil and LPG prices during a critical transition period.
Pornchai Chirakulpaisan, Director of the Policy and Planning Office at OFFO, explained that these matters require swift intervention from Minister of Energy Auttapol Rerkpiboon to prepare for upcoming legal changes and stabilize the energy market.
The four priority issues are:
- Recruitment of a New OFFO Director (Fourth Round):
The director position has been vacant since August 2024 following the tenure of Wisak Wattanasap. Although daily operations are currently managed by a committee, appointing a new director is essential for strategic oversight and agility. - Appointment of Expert Members to the Fuel Fund Executive Committee:
Four expert roles remain unfilled to meet legal requirements: one financial specialist, one energy expert, and two management experts. Candidates, whether active or retired, should be under 70 (preferably under 65), to contribute valuable advice on maintaining fuel price stability. - Updating the 2025–2029 Oil Crisis Management Plan:
OFFO is working on a revised plan to better respond to current economic conditions, redefining what constitutes an “oil price crisis,” and adjusting management frameworks. The plan includes reviewing existing price caps, such as the 30-baht per liter for diesel and the 423-baht limit for LPG cylinders, and seeking approval from the National Energy Policy Council and Cabinet. - Developing Criteria to Reduce Biofuel Subsidies Before the 2026 Legal Phase-Out:
Under the 2019 Oil Fuel Fund Act, all biofuel subsidies (for gasohol and biodiesel) must end by September 2026. OFFO aims to establish rules to manage biofuel prices without subsidies post-deadline, minimizing supply gaps and ensuring smooth policy transition.
These issues highlight the urgent need to strengthen Thailand’s energy stability, governance, and policy frameworks during this period of significant change, especially ahead of subsidy termination, which could impact household energy costs. Progress on these initiatives depends on decisive ministerial and cabinet actions to ensure a resilient and transparent energy system amid global volatility.