It is normal for people to go into panic mode during a crisis. Governments need to reassure them with reliable, enforceable plans to prevent hoarding of essential goods and fuel.
It's regrettable that the Anutin administration has not inspired that trust. For the past three weeks, the government's contingency plan to handle the current oil crisis has failed to reassure the public or prevent hoarding. As the Middle East war enters its fourth week, some petrol stations in 29 provinces reportedly closed. Many stations posted signs reading "No fuel" at their fronts. That should not happen, as Thailand has enough oil reserves for the next 100 days.
People do not believe the repeated assurances from Prime Minister Anutin Charnvirakul that there is no need to panic and that the country has sufficient oil. As a result, vehicles form long queues outside gas stations at dawn, with people carrying small oil containers.
So, what is the government doing? Mr Anutin derides "panic buyers" for hoarding fuel, while government officials deny accusations that "shadowy figures" are manipulating oil stocks for profiteering.
But how can people behave reasonably when fuel mysteriously runs out? How can they trust a government that has failed to tackle major hoarders? How can people not panic when police start arresting private oil storage operators suspected of hoarding?
On March 19, police and energy officials filed charges against a commercial oil storage facility in Ang Thong province, accusing it of selling diesel to petrol stations at higher prices. Officials found 330,000 litres of unaccounted-for oil at the facility. Police are investigating the related supply chain, including major refiners in Rayong's Map Ta Phut Petrochemical Estate.
At the western border, police also arrested drivers of oil trucks in Tak province's Mae Sot district trying to deliver 20,000 litres of diesel to Myanmar. It would not be surprising if similar smuggling and hoarding take place elsewhere.
In the face of mounting evidence, the Anutin administration finally addressed the problem. The government ordered refiners to increase supply to meet higher demand -- over 80 million litres per day, up from 67 million litres before Feb 28.
The government also opened fuel stations for factories and contractors to buy cheaper blended diesel. But will these solutions be enough? Critics are still urging the government to inspect private oil storage and cross-check inventories at refineries and petrol stations to prevent further hoarding.
The oil crisis may only be the first wave. After this, the country will likely face higher electricity prices, as over 50% of Thailand's power comes from imported LNG. With damaged gas facilities in Qatar taking years to repair, LNG prices are expected to rise.
We hope the Anutin administration communicates more clearly and implements long-term energy policies, rather than relying on short-term fixes such as borrowing to subsidise energy prices or cutting taxes. The energy crisis facing the country is far too large for band-aid solutions.
