Rising fuel and transport costs are putting upward pressure on the prices of essential goods, prompting the Commerce Ministry to move to stabilise retail prices through April.
Somchai Pornrattanajaroen, honorary adviser to the Thai Wholesale and Retail Trade Association, said consumer goods are already being affected by higher energy costs, alongside the need for clearer government energy policies.
Bottled palm oil has emerged as one of the first products to see price increases.
One-litre bottles have risen by five to eight baht depending on the brand, while wholesale prices have climbed from 41–42 baht to 48–49 baht per bottle. As a result, retail prices in small shops are now ranging between 50 and 53 baht.
He noted that manufacturers did not provide advance notice of the increases, instead signalling impending adjustments by withdrawing promotional campaigns and suspending orders before formally announcing higher prices.
Two key factors are driving the rise in palm oil prices. Government policies promoting biodiesel have diverted crude palm oil into fuel production, reducing supply for consumption, while higher packaging costs — particularly plastic bottles — have also contributed.
However, the impact of packaging costs remains relatively limited, adding no more than one baht per bottle.
Other goods are also being affected. Bottled drinking water has seen wholesale price increases, with low-cost 500ml packs rising from 20 baht to 25 baht due to higher plastic resin costs linked to oil prices and increased transport expenses.
At the same time, manufacturers of low-priced snack products have begun discontinuing items priced at five baht per pack, citing unviable production costs.
Wittayakorn Maneenetr, director-general of the Department of Internal Trade, offered a more reassuring outlook.
He said retail prices for palm oil currently range between 42 and 50 baht depending on the brand, with no confirmed price increases reported by producers or retailers.
“As a controlled product under the Price of Goods and Services Act, bottled palm oil remains subject to regulatory oversight.”
He added that authorities have asked businesses not to raise prices without valid justification and urged consumers to remain calm.
Thailand currently holds approximately 350,000 tonnes of crude palm oil reserves, which are sufficient to meet domestic demand. Additional seasonal output is expected between April and July to support both household consumption and energy use.
Following consultations with nine major consumer goods producers — including Unilever, Procter & Gamble and Nestlé — the Commerce Ministry said inventories remain adequate, with companies agreeing to maintain current prices until at least April.
However, risks remain. Ongoing conflict in the Middle East could disrupt supply chains, particularly for plastic packaging materials, potentially putting further pressure on prices in the future.
To help ease rising costs, the government is coordinating with state agencies to secure key raw materials such as plastic resin and solvents, including negotiations with South Korea to relax export restrictions.
Authorities are also considering stricter controls on six essential product categories, including detergents, personal care items and sanitary products, which would require prior approval before any price increases.
Enforcement efforts are being stepped up, with officials set to intensify inspections to prevent profiteering, ensure accurate product quantities and monitor stock levels to deter hoarding, Mr Wittayakorn said.
