BANGKOK: Thailand is grappling with its most severe energy crisis on record, with the government moving to seize "windfall profits" from refineries to prevent a total collapse of the country’s fuel subsidy mechanism.
Prasert Sinsukprasert, permanent secretary for Energy, revealed on April 3,l 2026 that global diesel prices have surged to nearly US$300 per barrel—almost triple the standard rate of $92. The current volatility far outstrips the previous records set during the Russia-Ukraine conflict, which saw prices peak at $150.
The crisis has left the state’s Fuel Fund nearly 50 billion baht in deficit. Although the fund holds a 150-billion-baht credit line, officials warn that at the current rate of depletion, these resources will last only another two months.
In response, the Ministry is negotiating with refineries to reclaim excess profits generated by the "War Premium" and inflated refining margins. Authorities are using a five-year average margin of 2.43 baht as a benchmark; any earnings significantly exceeding this are being eyed for redistribution to the public.
While PTT and Bangchak have reportedly offered preliminary cooperation, a final decision on the exact figures and the method of aid is expected this Monday.
The Ministry is considering whether to implement a general price reduction or provide targeted subsidies for the transport sector and vulnerable households.
To maintain market stability, the government has implemented modest price increases over the last 48 hours. Prasert explained that these adjustments are necessary to prevent "price shocks" that could lead to hoarding or fuel smuggling across Thailand’s borders.
Simultaneously, the government continues to spend 30 million baht daily to subsidise Liquefied Petroleum Gas (LPG), a move intended to keep food prices stable and protect the general cost of living.
"This is a moment of unprecedented gravity," Prasert stated. "We are seeking a balance that protects the public interest, and we believe our refineries will stand with the Thai people to navigate this crisis." - The Nation/ANN
