Thailand Expands Fuel Buffer as Regional Risks Rise

Thailand Expands Fuel Buffer as Regional Risks Rise

Thailand has increased its oil reserves from around 60 days to 95 days as officials respond to rising instability in the Middle East. Domestic traders were told to secure extra supply and speed up deliveries to areas facing shortages. The government is also raising the legal reserve requirement from 1% to 3% in an effort to strengthen longer-term energy security. Authorities said inspections are being stepped up to discourage hoarding, while oil exports have been reduced except where economic ties make exceptions necessary. If tensions drag on into May, Thailand may lean more heavily on diesel alternatives, biodiesel, cheaper imported fuel grades, added LNG procurement, and higher gas output from the Gulf of Thailand.