Thailand Advances Talks on Refining Margins to Curb Fuel Costs

Thailand’s Cabinet has authorized the Energy Ministry to negotiate with oil refineries to address excess refining margins, aiming to ease rising fuel costs affecting households and businesses. Deputy Transport Minister Siripong Angkasakulkiat stated the special Cabinet meeting, led by Prime Minister Anutin Charnvirakul, confirmed reports of excessive refinery profits. A committee, led by the energy permanent secretary, was formed to manage the negotiations and propose actions.

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Calculations of excess profits will reflect actual older oil stock costs rather than volatile daily prices, focusing on monthly averages. The government, unable to enforce compliance, will primarily use negotiation to recover excess profits. Options include cash returns or oil stock compensation. Long-term strategies may invoke the Emergency Decree to clarify compensation methods or provide alternative support if refineries encounter losses.

Deputy Prime Minister Pakorn Nilprapunt discussed strengthening energy measures, potentially using the prime minister’s powers to reassess oil pricing and margins. Energy Minister Akanat Promphan plans immediate talks with refineries, intending to present findings to the National Energy Policy Committee. The rise from standard margins of 2-3 baht to 16-17 baht in April 2026 prompted this scrutiny.

Pakorn suggested additional emergency measures, like remote work for civil servants to reduce fuel use. Fixed operating hours for petrol stations may also be introduced post-Songkran holiday. Potential refining margin and fuel tax cuts require approval from the relevant committee before further assessment by the Finance Ministry.

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