BANGKOK: Energy Minister Auttapol Rerkpiboon (pic) said Thailand’s oil supply can be supported for up to 95 days and stressed the government has a set of contingency steps — ranging from an export suspension to higher reserve requirements and potential biodiesel and refined-product measures — after the Strait of Hormuz closure heightened supply concerns.
Speaking at Government House on Thursday (March 5), Auttapol said he briefed Prime Minister Anutin Charnvirakul after an urgent meeting on energy measures.
He said Thailand’s existing oil reserves — previously discussed as 60 days but in practice 65 days — would be supplemented by confirmed supplies from outside the Middle East equivalent to a further 30 days, bringing total coverage to 95 days.
He said the figure will be updated as additional deliveries are confirmed through April and into May.
Auttapol said the government is working through a sequence of measures to minimise the impact and ensure confidence in domestic supply, including:
Export suspension: Oil exports have been suspended, except to Laos and Myanmar, which he said have mutual energy dependence with Thailand.
Higher reserve requirement: The Energy Ministry is preparing to raise the mandatory reserve requirement from 1% to 3% to increase domestic stockpiles.
Biodiesel blend increase: If shortages intensify, the biodiesel blending ratio can be increased quickly—especially when global diesel prices rise.
Refined-product imports if needed: Thailand could import refined fuel, but the ministry would first need to temporarily relax domestic fuel specifications, which are set high for environmental reasons.
He added that as refinery output currently exceeds domestic consumption, the export suspension may require refineries to adjust production so traders can hold larger reserves.
On prices, Auttapol said the government will keep diesel capped at 29.94 baht per litre for 15 days, using the Oil Fuel Fund mechanism.
Gasoline prices are also receiving partial support through the same fund. After the 15-day period, the government will reassess the situation and consider what additional mechanisms may be needed, depending on whether fighting remains protracted.
Auttapol said Thailand is seeking additional energy supplies from the United States, Africa and Malaysia, and that the Energy Regulatory Commission has approved procurement from alternative sources, with PTT expected to be able to confirm orders within next week.
For natural gas—used mainly for power generation—he said 50–60% is transported by pipeline, with the remainder imported as LNG from Qatar, where shipping is currently a concern.
However, he said the government is preparing alternatives, including increased hydropower imports from Laos and gas from the Thailand–Malaysia Joint Development Area (JDA), with conclusions expected soon. He insisted Thailand would not face shortages of oil, gas or electricity. - The Nation/ANN
