Bangkok: The Energy Policy Committee (EPPC) has announced the removal of the price ceiling for diesel and gasoline, previously capped at 35 baht per liter. The decision, effective from July 16, 2026, follows a meeting chaired by Energy Minister Ekanat Promphan, where the committee also decided to extend the liquefied petroleum gas (LPG) price freeze for an additional three months.
According to Thai News Agency, the EPPC's resolution on July 15th not only lifted price controls on diesel and gasoline but also maintained the wholesale price of LPG at the refinery at 20.9179 baht per kilogram. This measure keeps the retail price of LPG stable at approximately 423 baht per 15-kilogram cylinder, extending the freeze until October 31, 2026. The authority to adjust oil prices remains with the Fuel Oil Fund Management Committee (FOMC), which will consider using refinery operating results to manage prices as per the Prime Minister's authority under the Fuel Oil Shortage Prevention and Mitigation Act of 1973.
Oil traders are closely monitoring the situation following recent US-Iran conflicts in the Middle East, which have led to increased crude oil prices. A potential price increase at gas stations may be avoided if the National Energy Policy Committee (NEPC) opts to use the fund for subsidies, though this could exacerbate the fund's existing deficit. The continued freeze on LPG prices is seen as a necessary step to alleviate living costs amidst economic challenges linked to global energy issues.
Retail fuel prices have remained unchanged due to the National Fuel Oil Fund's (NFF) decision to reduce fund contributions and enhance fuel price subsidies, despite the fund's current deficit exceeding 59 billion baht. Effective July 18th, the NFF adjusted the fuel oil fund rates, increasing subsidies for Diesel B7, B20, and various Gasohol blends, while slightly reducing the gasoline subsidy.
The ongoing conflict in the Middle East has further intensified global oil prices. On August 17th, Singapore oil prices saw significant increases, with diesel closing at $148.53 per barrel and gasoline at $110.88 per barrel. Dubai crude oil, WTI crude oil futures, and Brent crude oil futures also experienced notable rises due to escalating US-Iran hostilities, impacting fuel costs in Thailand. The situation remains volatile as both nations continue their aggressive actions in the region.