Thailand Hikes Diesel to 50.54 Baht as Fuel Crisis Deepens

The Fuel Fund Board has approved an increase in diesel prices, with the retail price of B7 diesel rising to 50.54 baht per litre and B20 diesel to 45.54 baht per litre, effective 5 April 2026. The decision follows a reduction in subsidy rates aimed at easing the financial burden on the state Oil Fuel Fund. The adjustment will have an immediate impact on transport costs and the wider economy.

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At a meeting on 4 April 2026, the board agreed to cut the subsidy for B7 diesel by 2.61 baht per litre, reducing it from 20.71 baht to 18.10 baht per litre. Subsidies for B20 diesel were also reduced by 2.61 baht per litre, from 22.22 baht to 19.61 baht per litre. These measures are intended to reduce the fund’s daily outflow from 1,708.75 million baht to 1,496.72 million baht.

The move comes amid rising global energy costs and increasing pressure on Thailand’s fuel subsidy system. Authorities have been attempting to balance consumer price support with the need to maintain the liquidity and stability of the Oil Fuel Fund. The latest adjustment reflects efforts to align domestic fuel prices more closely with market conditions.

Amarin reported that the price increase is expected to affect logistics, transportation, and consumer goods prices, as diesel is widely used across multiple sectors. Businesses and consumers face higher operating and living costs as a result. Government officials have indicated that subsidy reductions are necessary to prevent further financial strain on the fund.

Further adjustments may depend on global oil price movements and the financial position of the Oil Fuel Fund. Authorities are expected to continue monitoring the situation and may introduce additional measures if necessary to manage the ongoing energy cost pressures.

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Adapted by ASEAN Now Amarin 5 Apr 2026