Energy Minister Akanat Promphan said he plans to cap refinery margins at 3-4 baht per litre in a bid to curb rising fuel costs without relying on subsidies.
Mr Akanat said on Thursday that he would call a meeting of the Energy Policy Administration Committee (Epac) to consider urgent measures on fuel and electricity costs after the government is sworn in and delivers its policy statement to parliament.
Mr Akanat said current ex-refinery prices are fully based on the Singapore market and have led to excessive volatility in domestic fuel prices.
Refinery margins have increased sharply from an average of 2-3 baht per litre to an average of about 7 baht in March and recently surged to nearly 14 baht per litre, he said, pointing to the Middle East conflict as causing the abnormally high prices.
He said the ministry will use the powers available under the 1973 executive decree on fuel shortages to review the pricing formula and consider Dubai crude prices.
"A cap is being considered for refining margins at 3-4 baht per litre, which can push down station prices without relying on the Fuel Oil Fund. This must take place before Songkran," he said.
Mr Akanat also stressed the need to improve transparency in the oil trading system, noting that current stock data reported by the Department of Energy Business is limited to monthly figures, leaving room for discrepancies.
He said Prime Minister Anutin Charnvirakul has ordered daily reporting of oil stocks at storage facilities to prevent hoarding and illegal exports. Authorities have already detected irregularities in some cases and are prepared to take legal action, he noted.
On electricity prices, he said the government can still review the rate through the National Energy Policy Council (NEPC), chaired by the prime minister, particularly during a crisis.
From May to August, the tariff has been raised to 3.95 baht per unit from the current 3.88 baht per unit.
Mr Akanat said efforts to stabilise electricity prices focus on managing the financial burden of the three state-owned power utilities, which already carry accumulated losses.
He said there are two key options -- delaying debt repayments and adjusting investment budgets to help lower costs in the next billing cycle. Another possible alternative is revising the tariff structure to make it more progressive.
He said such measures could help keep electricity prices at 3.88 baht per unit, but noted they are short-term steps. Long-term solutions include implementing a direct power purchase deal, promoting rooftop solar and improving demand management, he said.
