Oil prices crippling a billion-dollar food source


At the limit: Trawlers docked at a pier as rising diesel prices make fishing operations unprofitable, in Samut Sakhon province. — Reuters

A surge in ­diesel prices triggered by the US-Israeli conflict with Iran is pushing Thailand’s multi-billion-­dollar fishing industry towards a standstill, with fisher­men warning that their boats could be idled within days unless the government steps in.

At the country’s largest fishing port in a central province along the coast of the Gulf of Thailand, over half of the fishing trawlers are already docked and those still operating would likely stop work within days, said Jumpol Kanawa­ree, president of the Samut Sakhon Fishmonger Association.

“After April 1, you may see that there may be no fish sold because the fishing boats can no longer bear the cost of their crewmen, their families,” he said. “They won’t be able to make ends meet.”

In 2024, Thailand exported US$7bil worth of fishery products to destinations including the United States, Japan and China, government data showed.

Finance Minister Ekniti Niti­thanprapas on Wednesday said the government was preparing a package to support fishermen, including supplying B20 biodiesel and palm oil to prevent further price surges.

Thailand has about 100 days of oil reserves, according to officials.

Thai diesel prices reached 38.94 baht (RM4.71) per litre yesterday after government subsidies ended, rising from 29.94 baht (RM3.62) per litre in February before the conflict in the Middle East erupted.

If diesel prices touch 40 baht (RM4.84) a litre, fishing trips would become unviable and some boat crews are already adjusting their trips to conserve fuel, fisherman Boonchoo Lonluy said.

“Now that the price has gone up, we’ve been trying to sail slower, which in turn resulted in a lower catch,” he said.

“We can’t live like this.”

Around 800 tonnes of fish from 22 coastal areas are sold at Samut Sakhon’s fish market each day, Jumpol said, adding that the ­current fuel crunch was the worst crisis in decades, even more ­crippling than the Covid-19 pandemic. — Reuters

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