Thailand will slash pump prices for diesel by 2.14 baht a litre from Thursday, offering motorists and businesses immediate relief after the government approved an overhaul of refinery pricing to ease household costs and shore up the heavily indebted Oil Fuel Fund.
The cut follows a decision by the Energy Policy Administration Committee to adopt a new method of calculating ex-refinery prices, alongside a reduction in state compensation as global oil prices continue to slide.
Energy Minister Akanat Promphan, who chairs the Oil Fuel Fund Management Committee (OFMC), said on Wednesday that the measures were designed to balance consumer relief with fiscal reality.
The measure trims ex‑refinery prices by 2 baht per litre for B7 and B20 diesel, the first cut under a revised formula tied to a Singapore reference.
The change will be passed fully to consumers. From Thursday, retail diesel prices will fall by 2.14 baht per litre at petrol stations nationwide, bringing B7 diesel to 48.40 baht per litre and B20 to 43.40 baht per litre.
The committee also agreed to scale back diesel subsidies after international oil prices showed a sustained decline. Global benchmark prices slipped from around US$293 a barrel on April 2 to about US$255 a barrel by Tuesday, creating scope for the government to reduce financial support.
Energy Minister Akanat Promphan. (Photo: Chanat Katanyu)
Subsidies for B7 diesel will be cut by 3.54 baht per litre, from 18.54 baht to 15 baht, while compensation for B20 will fall by 3.06 baht per litre, from 20.09 baht to 17.03 baht, according to the OFMC.
The reductions will cut daily Oil Fuel Fund spending by about 288 million baht, from 1.53 billion to roughly 1.24 billion, giving the heavily strained fund short‑term breathing space.
Even so, the fund’s finances remained fragile. As of Wednesday, its overall deficit stood at 57.76 billion baht, with the oil account showing a shortfall of 20.25 billion baht and the liquefied petroleum gas account in the red by 37.51 billion baht.
Mr Akanat said cooperation from all sides was critical as Thailand navigates ongoing volatility in global energy markets.
The minister thanked the public for its patience and refinery operators for sharing the burden, saying the collective effort would help moderate living costs and keep the economy moving amid an uncertain international backdrop.
