Bangkok: Ekanat affirms that refinery funds and reserves can be used to control oil prices, and is confident that oil reserves are sufficient and there will be no shortage. According to Thai News Agency, Mr. Ekanat Promphan, Minister of Energy, addressed the domestic oil price situation following the rise in global prices due to escalating events in the Middle East. He stated that over the past week, the prices of all types of oil have increased significantly. In Thailand, the mechanism of reducing refinery prices to use the revenue from refineries to reduce prices at gas stations is still in place. In addition, the Oil Fund is being used to manage prices appropriately in line with market trends, avoiding the large fluctuations seen previously. He affirmed that the Ministry of Energy will manage and monitor the situation daily to prevent rapid and sharp price increases in response to market fluctuations.
When asked whether domestic fuel prices would not be increasing in the near future, the Minister of Energy said that it depends on the situation day by day. However, even if prices are adjusted up or down, it won't be a sudden, drastic change; it will be a gradual process.
In addition, the supply of oil will also be managed. Based on our checks, there are no problems with domestic crude oil. The amount of refined oil reserves in storage is sufficient, almost full. We can confirm that there will be no oil shortage. Therefore, prices will be managed according to market mechanisms.
When asked at what level of assessment would be necessary before a price increase is considered, Mr. Ekanat said that they would gradually assess the situation. He explained that in the past, they didn't constantly rely on Singapore prices because, even when they did, they reduced prices by using funds from refineries. This mechanism was used during the Emergency Decree on Amending and Preventing Fuel Shortages to lower prices, and they will consider further adjustments.
Currently, the 10.5 billion baht mentioned is being used to reduce fuel prices at gas stations, and this is being implemented. In the past, when fuel prices were reduced, almost no money from the fund was used; instead, the fund had been in deficit since before I took office as Minister of Energy. Therefore, mechanisms at the refinery level and the fund will be used to help prevent prices from fluctuating rapidly according to global market prices.