Prime Minister Anutin Charnvirakul has issued an apology over fuel management issues in Thailand, acknowledging that disruptions linked to the Middle East conflict have persisted longer than initially anticipated.
Speaking at a press conference at Government House on Saturday, Mr Anutin said the government’s decision to lift fuel price caps would help curb cross-border oil smuggling and ease domestic shortages following one month of ongoing conflict in the Middle East.
The move came after the government abruptly ended price controls, triggering a six-baht-per-litre increase on Wednesday night.
The decision, announced by the Oil Fuel Fund, prompted motorists nationwide to rush to petrol stations ahead of the 5am Thursday implementation, resulting in long queues across the country.
The sudden price hike drew widespread public criticism. Although the Oil Fuel Fund Office later defended the increase, citing multiple contributing factors, Mr Anutin had not publicly addressed the issue until Saturday.
“I apologise to people for the chaos caused by the management of the fuel situation,” he said while bowing before the press.
Mr Anutin explained that during the first 15 days following the outbreak of the US–Israel war against Iran on Feb 28, the government attempted to stabilise prices, believing the conflict would be short-lived.
During that period, the Oil Fuel Fund spent approximately 20 billion baht subsidising fuel prices. However, as daily subsidy costs climbed to 2 billion baht, the approach became financially unsustainable.
“Now the situation has changed and is unlikely to end soon, so the government has had to adjust its measures, focusing on vulnerable groups such as low-income workers, farmers and (transport) operators,” Mr Anutin said.
He clarified that ending the price cap does not mean fully deregulating fuel prices, but rather reducing subsidies from 24 baht to 16 baht per litre. The adjustment is intended to better reflect global market conditions and align domestic prices more closely with neighbouring countries.
According to Mr Anutin, the policy shift will also help prevent subsidised Thai fuel from being smuggled across borders and reduce hoarding for industrial resale.
He added that fuel shortages at petrol stations have begun to ease, following government efforts to increase delivery frequency, release reserves into the system, and enforce anti-hoarding regulations.
Mr Anutin also noted that an agreement with Iran ensuring safe passage for Thai oil shipments through the Strait of Hormuz would help stabilise fuel imports.
Demand Surges Amid Panic Buying
Thailand’s refining capacity stands at approximately 77 million litres per day, exceeding its average daily consumption of 67 million litres. However, panic buying has driven demand up to 82 million litres per day—around 22% above normal levels.
The government is now urging the public to reduce consumption by around 15 million litres per day, attributing the surge largely to public concern rather than actual supply shortages. Officials say that more prudent usage would allow surplus fuel to be redirected into national reserves.
Provincial governors have also been instructed to closely manage supply distribution, particularly along major travel routes ahead of the upcoming Songkran holiday.
“People can be assured of having enough fuel for travel back to their hometowns,” Mr Anutin said.
He added that fuel prices in Thailand remain lower than those in neighbouring countries such as Malaysia, Vietnam and Laos, and encouraged the public to adapt their consumption habits during the crisis.
Mr Anutin called on households to cut fuel usage by one litre per day, noting that with around 10 million households nationwide, this could reduce consumption by up to 10 million litres daily.
Such a reduction would either lower fuel imports or boost national reserves by an equivalent amount. It would also ease the government’s subsidy burden, currently averaging 20 baht per litre, potentially reducing compensation costs by 200 million baht per day.
With fuel prices averaging 40 baht per litre, households could collectively save approximately 400 million baht daily, he said.
The government plans to channel these savings into the Khon La Khrueng Plus co-payment scheme to help lower living costs and stimulate economic activity.
At the same briefing, Mr Anutin confirmed that a new cabinet lineup would be submitted for royal endorsement on Monday, stating that all qualification issues had been resolved and a new administration would be formed within the week.
Once sworn in, the government will coordinate with the Speaker of Parliament to deliver its policy statement and begin addressing global challenges as a priority, he added.
