Bangkok: Diesel prices at gas stations have not decreased, even with refineries contributing 3,892 million baht to freeze prices. The Energy Policy Committee (EPPC) has tapped into this substantial sum from refineries to stabilize prices, effectively reducing the refinery price by 2.40 baht per liter amid soaring global prices. These funds are assisting in maintaining the current retail prices of all fuel types.
According to Thai News Agency, the Fuel Fund Management Committee (FFMC), chaired by Minister Ekanat Promphan, alongside the Energy Policy Administration Committee (EPAC), decided on July 24th to implement subsidies. They are utilizing surplus profits from the EPAC's price reduction at refineries for diesel types B0, B7, and B20 by 2.40 baht per liter from July 24th to August 15th, 2026. This initiative, costing around 3,892 million baht, aims to manage and stabilize retail prices for diesel and gasoline, preventing hikes amid volatile global market prices and ultimately easing the public's cost of living burden.
The Fuel Fund Office explained that the Energy Policy Committee (EPC) resolution acts as a "shock absorber" to mitigate pressure on fuel prices at gas stations, preventing sudden rises fueled by volatile global market movements. The EPC is tasked with managing these costs and has approved increased compensation rates from the Fuel Fund for both diesel and gasoline. The committee will continue to closely monitor global energy price volatility to manage the situation prudently. Furthermore, the EPC urges all sectors to conserve energy to reduce the national burden and ensure the long-term stability of the Fuel Fund, which relies on public funding.
The ongoing Middle East conflict and the blockade of shipping lanes in the Red Sea have led to a significant surge in diesel prices in the Singapore market. On July 23, 2026, diesel prices skyrocketed to US$167.62 per barrel, while gasoline prices rose to US$128.33 per barrel. This situation mirrors the petrol prices in Thailand, which should have increased by approximately 8-10 baht per liter in recent weeks. This creates substantial pressure on the Fuel Fund, which is tasked with maintaining fixed fuel prices, and impacts the public's cost of living.