Thailand has raised the retail price of diesel to 33 baht per litre from 24 March 2026, as authorities seek to ease mounting pressure on the state Oil Fuel Fund. The move follows a decision by the Oil Fuel Fund Management Committee to reduce diesel price subsidies. The adjustment is expected to have an immediate impact on transport costs and fuel expenses nationwide. Get today's headlines by email The decision comes amid a sharp rise in global energy prices, driven in part by escalating tensions in the Middle East, particularly following attacks involving Iran. Diesel prices in the Singapore market surged from about 92 U.S. dollars per barrel to 223 dollars, an increase of 131 dollars. This spike translates into an estimated rise in costs of around 26 baht per litre. Pornchai Jirakulpisan, director of policy and planning at the Oil Fuel Fund Office, said the fund has been absorbing compensation costs of nearly 2.4 billion baht per day, or roughly 70 billion baht per month. The sustained financial burden has prompted urgent measures to preserve the fund’s liquidity. Officials said maintaining long-term price stability is a key objective of the adjustment. Authorities also aim to narrow the price gap with neighbouring countries to deter fuel smuggling and stockpiling. Malaysia, for instance, raised its diesel price to around 38.70 baht per litre as of 16 March. Officials warned that significantly lower domestic prices could encourage illegal exports and profiteering, resulting in resource leakage. The Energy Ministry stated that the increase is necessary to balance the fund’s financial stability with national energy security. It added that efforts will continue in coordination with relevant agencies to mitigate the impact on the public. The policy reflects ongoing concerns over both fiscal sustainability and supply security. Khaosod reported that authorities are expected to monitor global oil price movements and adjust policies accordingly. Further measures may be considered if volatility persists in international energy markets. Officials have indicated that maintaining a balance between consumer protection and financial stability will remain a priority. Join the discussion? Already a member? Adapted by ASEAN Now Khaosod 25 Mar 2026
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