Thailand has implemented a significant increase in retail fuel prices, effective March 31, with diesel costs surpassing 40 baht per litre following a late-night decision by the Oil Fuel Fund Management Committee (OFMC).
Major fuel distributors, including PTT Oil and Retail Business Plc (OR) and Bangchak Corporation Plc, raised prices from March 31. Petrol and gasohol increased by 1 baht per litre, while diesel saw a steeper rise of 1.80 baht per litre.
The adjustment pushed the retail price of standard diesel in Bangkok to 40.74 baht per litre, up from 38.94 baht, crossing the key 40-baht threshold for the first time in this cycle.
The move comes after the OFMC approved an increase in diesel compensation from the Oil Fuel Fund during a meeting on the evening of March 30, lifting the subsidy to 18.76 baht per litre, an increase of 2.09 baht per litre.
Despite the higher level of support, domestic diesel prices still rose by 1.80 baht per litre, driven by rising global oil costs.
Authorities cited a sharp surge in global diesel, or gas oil, prices as the primary factor behind the adjustment, with rates reaching approximately US$238 per barrel on March 27, compared with pre-conflict levels of around US$92 to US$95 per barrel.
The committee said ongoing volatility in global oil markets has required close monitoring of several variables, including international pricing trends, regional benchmarks, the financial status of the Oil Fuel Fund, and the broader economic impact on consumers.
In response, the OFMC convened an evening meeting between around 7pm and 8pm on March 30, before announcing the revised compensation measures shortly afterwards.
The increased level of diesel subsidy has added further pressure on the Oil Fuel Fund, with daily expenditures rising by approximately 170 million baht. Total daily outflows have now reached around 1.505 billion baht, up from 1.335 billion baht previously.
As of March 29, the fund remained heavily in deficit at 42.148 billion baht, including a 4.833-billion-baht shortfall in the oil account and 37.315 billion baht in the LPG account.
The latest price adjustment highlights growing strain on Thailand’s energy pricing framework, as continued instability in global oil markets raises the likelihood of further increases if current conditions persist.
