Bangkok:Thailand is diversifying its energy import sources to mitigate the risk associated with the Strait of Hormuz crisis. The National Economic and Social Development Council (NESDC) has highlighted efforts to reduce reliance on imports from key countries.
According to Thai News Agency, the Trade Policy and Strategy Office (TPSO) has revealed a significant shift in Thailand's crude oil import strategy, reducing dependency on the United Arab Emirates, Saudi Arabia, and the United States from 74.4% to 54.7%. The United States has also replaced Qatar as Thailand's leading natural gas supplier, now accounting for 29.9% of imports.
Mr. Nantapong Chiraleartpong, Director of TPSO, emphasized the need for diversification due to uncertainties in the Middle East affecting the Strait of Hormuz. He noted that any disruption in energy supply could lead to increased costs across importation, production, transportation, and consumer goods.
Thailand's diversification efforts include increased oil imports from Angola, Brazil, and Argentina, reflecting a strategic move towards African and Latin American sources. Despite these changes, the country remains susceptible to energy price fluctuations influenced by global market conditions.
The impact of rising energy prices is evident in the import price index, which rose by 12.3% for September 2026, and the Producer Price Index, which increased by 10.2% for October 2026. The overall inflation rate reached 3.90%, driven largely by a 29.18% rise in fuel prices, affecting domestic production costs and consumer confidence.
The NESDC continues to focus on managing energy security by ensuring supply and addressing price volatility. Monitoring energy imports, along with relevant economic indices, will guide policy recommendations to ease the burden on businesses and consumers.