Bangkok:The Ministry of Energy is implementing systematic measures to address the crisis in oil prices, focusing on managing the situation through the Fuel Fund, which has received Cabinet approval. This initiative aims to establish a clear framework for effective intervention and subsidies in the oil price market. Despite the Fuel Fund's deficit surpassing 100 billion baht, the ministry assures that borrowing is unnecessary at present, and the situation remains manageable.
According to Thai News Agency, Mr. Pongpol Yodmuangcharoen, spokesperson for the Ministry of Energy, outlined the ministry's approach to the ongoing global energy price crisis resulting from conflicts in the Middle East. This situation has led to a severe energy stability crisis, affecting both supply and pricing, necessitating a complete overhaul of national energy planning and forecasts. Even if the conflict eases, oil prices are not expected to return to pre-war levels due to infrastructure damage and prolonged recovery of energy sources.
The Fuel Oil Fund and the Fuel Oil Fund Office have developed a Fuel Oil Crisis Response Plan and a Fuel Oil Fund Strategic Plan for 2026-2029, approved by the Cabinet on September 22, 2026. These plans set out criteria for compensating oil and LPG prices across three scenarios: when fuel prices exceed 30 baht per liter, significant fluctuations in global oil prices, and domestic oil shortages due to reduced crude oil supply and imports.
The government has also prioritized five management tools to proactively address the crisis. First, they emphasize using the Oil Fund prudently, despite its current deficit of over 98 billion baht, ensuring its good credit and repayment capability. Second, managing refining margins by diverting excess refinery profits to the Fuel Fund has already resulted in the collection of 28 billion baht. Third, collaboration with the Ministry of Finance to potentially reduce excise taxes on blended biofuels is underway.
Efforts to secure new energy sources include plans to explore and drill for natural gas in the Gulf of Thailand and the Andaman Sea, enhancing domestic self-reliance and reducing LPG costs. Additionally, the government is accelerating the "One Million Solar Rooftops" project and supporting biofuel production from agricultural crops to distribute income to farmers, aiming for sustainable and affordable energy in Thailand.
By focusing on biofuels and managing domestic retail prices, the government aims to reduce dependency on volatile global oil markets, contributing to economic stability and energy security. The Ministry of Energy is committed to adhering to this strategic plan, ensuring sufficient energy supply at stable prices amid the global energy crisis. Mr. Pongpol confirmed that while the Oil Fund is in deficit, it remains manageable without borrowing, although contingency plans are prepared should the situation worsen.