Thailand Bans Fuel & LPG Exports Amid Supply Fears

The Royal Gazette has published a Prime Minister’s Order temporarily banning exports of refined petroleum products and liquefied petroleum gas (LPG) to prevent a potential domestic fuel shortage. The measure comes amid escalating conflict in the Middle East that has disrupted key shipping routes. The order took effect immediately upon its publication on March 6, 2026.

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The export suspension applies to refined petroleum products including gasoline, gasohol or base gasoline, high-speed diesel and Jet A-1 aviation fuel, as well as LPG. Oil traders governed by Thailand’s fuel trade law must halt exports of these fuels outside the Kingdom until further notice. However, the ban does not apply to shipments to Laos and Myanmar, fuel imported for re-export and stored in bonded warehouses or free zones, or fuel that fails to meet domestic quality standards and therefore cannot be sold in Thailand.

The order also requires oil traders operating under Section 7 of the Fuel Trade Act, 2000, to increase reserves of domestically produced fuel. Reserve requirements will rise to 1.5% from March 31, 2026, and increase further to 3% from April 30, 2026. The calculation of reserve volumes and approval of storage facilities must comply with existing legal criteria, procedures and conditions governing fuel trade.

The government said the decision was prompted by intensifying tensions involving the United States, Israel and Iran. According to the order, the conflict has escalated into severe retaliation, including air strikes on strategic sites in the Middle East and tighter restrictions on shipping routes through the Persian Gulf and the Strait of Hormuz.

These waterways are among the world’s most important energy transport corridors and are critical to global oil flows. Thai authorities warned that the situation could affect the country’s fuel supply and that it remains impossible to predict when the disruption will end. The Prime Minister therefore issued the directive under Section 3 of the Emergency Decree on Remedying and Preventing Fuel Shortage, 1973.

The order also allows for temporary relief from reserve requirements in certain circumstances. If a Section 7 oil trader can provide written evidence showing that a Section 9 trader cannot meet the required reserve levels, or that compliance would cause excessive damage, the Director-General of the Department of Energy Business may grant temporary exemptions or reductions.

The Nation reported that such relief must be approved by the Energy Minister and may include conditions. The arrangement is intended to ensure supply security while allowing flexibility for traders facing operational constraints.

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Adapted by ASEAN Now Nation 7 Mar 2026

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