Thailand Cabinet to Review 150bn Baht Oil Fund Guarantee

The Energy Ministry will ask the first Cabinet meeting to approve an emergency decree allowing the Finance Ministry to guarantee a 150-billion-baht loan for the Oil Fuel Fund for one year. The move aims to boost liquidity and stabilise domestic fuel prices amid global oil volatility linked to tensions in the Middle East. Officials say the measure is intended to ease the financial burden on the public.

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Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said on Tuesday that he had instructed Finance Ministry representatives on the boards of oil companies and refineries to strictly supervise operations and prevent oil hoarding. He also directed the Customs and Excise departments to tighten controls against illegal oil exports to neighbouring countries, citing lower fuel prices in Thailand compared to nearby markets.

Lavaron Sangsnit, permanent secretary for finance, said the proposed decree would authorise borrowing by the Oil Fuel Fund within a 150-billion-baht framework for one year. He noted that the borrowing would be counted within the public debt ratio if implemented, but stressed that the government retains sufficient fiscal capacity to manage the current crisis.

Public debt currently stands at 66 percent of GDP and Lavaron said that even with the inclusion of the proposed loan guarantee, the government would still have room for additional policy measures exceeding 300 billion baht. He added that a similar 150-billion-baht guarantee was issued during the Russia-Ukraine crisis, when the Oil Fuel Fund faced a deficit of more than 130 billion baht and that measure proved sufficient.

On potential tax relief, Lavaron said the government has yet to decide whether to reduce excise tax, currently set at 6 to 7 baht per litre. He explained that authorities are considering two mechanisms to support the public: using the Oil Fuel Fund or adjusting oil taxes, noting that both approaches would ultimately provide similar relief.

The Nation reported that the Cabinet is expected to deliberate on the proposal at its first meeting, where the Energy Ministry will formally present the decree. The outcome will determine how Thailand manages fuel price pressures in the short term as global energy markets remain volatile.

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Adapted by ASEAN Now Nation 1 Apr 2026