The Fuel Fund Management Committee, late on 25 March, approved a reduction in subsidies for diesel and petrol, leading to a 6 baht per litre increase in retail fuel prices. The move comes amid rising global oil prices and is expected to have an immediate impact on transport costs and household expenses. Authorities said the adjustment is necessary to stabilise the country’s fuel pricing system. Get today's headlines by email The committee said global oil prices have surged due to escalating tensions in the Middle East. Diesel prices in the Singapore market rose sharply from US$198.20 per barrel on 23 March to US$242.91 per barrel, intensifying pressure on domestic fuel costs. The increase has made it more difficult for Thailand to maintain subsidised fuel prices at previous levels. Officials noted that the fuel fund has been subsidising prices at an estimated 2.6 billion baht per day, or around 80 billion baht per month. The reduction in subsidies is intended to ease this financial burden and maintain the fund’s liquidity. Authorities said the step is crucial to ensure long-term price stability during ongoing volatility in global energy markets. The price adjustment is also aimed at aligning Thailand’s fuel prices with those in neighbouring countries. Officials warned that maintaining lower prices could increase the risk of fuel smuggling and stockpiling for profit. In Malaysia, diesel prices had already reached about 39.54 baht per litre as of mid-March, highlighting regional price differences. Khaosod reported that the government said it is preparing support measures to cushion the impact on vulnerable groups, including public transport operators, farmers, fishermen and small businesses. Authorities also urged the public to use energy more efficiently during the period of uncertainty. Further measures and monitoring are expected as global oil price movements continue to influence domestic policy decisions. Join the discussion? Already a member? Adapted by ASEAN Now Khaosod 26 Mar 2026
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