BANGKOK: Thailand is considering issuing an emergency decree authorising the Finance Ministry to borrow 500 billion baht as the government braces for twin threats from soaring energy costs and a looming super El Niño.
The prolonged conflict in the Middle East, which has continued since Feb 28, 2026, has pushed up global energy prices and is expected to affect Thailand’s economy and inflation this year.
Against that backdrop, the government has begun weighing the use of an emergency borrowing decree to prepare for both the energy crisis and climate-related disruptions.
Deputy Prime Minister Pakorn Nilprapunt said on Monday that the government was considering issuing a decree to empower the Finance Ministry to raise 500 billion baht to prepare for what he described as overlapping crises: the energy shock and super El Niño.
He said the move would fall under the government’s powers under Section 172 of the Constitution, which allows an emergency decree to be issued in urgent and necessary circumstances relating to national security or the economy.
Once issued, the government must submit it to the House of Representatives at the earliest possible opportunity.
According to Pakorn, the use of an emergency decree is being considered because the situation is both urgent and exceptional, while the state’s cash position is relatively limited and tight.
At the same time, Thailand is facing rising risks from hard-to-predict external factors, including war and super El Niño, both of which could hit agricultural output and the wider economy.
The government, therefore, needs to prepare budgetary capacity to respond to emergencies.
Over the years, emergency borrowing laws have repeatedly been used by Thai governments as a tool to confront major national crises.
If the current administration under Prime Minister Anutin Charnvirakul proceeds with the plan, it would become the sixth government in nearly 30 years to rely on special borrowing powers to deal with a major emergency.
The pattern spans five major crises and six governments:
> Chuan Leekpai government. The Chuan administration issued two emergency borrowing decrees worth a combined 800 billion baht.
> Thaksin Shinawatra government. The Thaksin administration issued one emergency borrowing decree.
> Abhisit Vejjajiva government. The Abhisit administration issued one emergency borrowing decree.
> Yingluck Shinawatra government. The Yingluck administration issued one emergency borrowing decree.
> Prayut Chan-o-cha government. The Prayut administration issued two emergency borrowing decrees.
> Anutin Charnvirakul government. The current government is considering issuing one emergency borrowing decree to tackle the energy crisis triggered by the war in the Middle East, which has driven up domestic retail oil prices.
Diesel prices in Thailand climbed to 50.54 baht per litre on April 5, 2026.
To contain domestic fuel prices, the government has relied on the Oil Fuel Fund mechanism. As of April 20, 2026, the fund was running a deficit of 62.05 billion baht, while the Energy Ministry said oil reserves stood at 110 days.
Beyond the energy shock, the government also wants to prepare funding to cope with the threat of super El Niño, which has been described as potentially the worst in 140 years.
The Thai Meteorological Department has assessed that Thailand is likely to enter El Niño conditions between June and August 2026, with a 62% probability, and that the pattern could continue through the year.
Meanwhile, the Hydro-Informatics Institute has forecast annual rainfall in 2026 at levels close to those seen in 2012, at 1,479mm, below the 30-year average of 1,500mm. — The Nation/ANN
