Fuel shock threatens Thai fishing shutdown

SAMUT SAKHON, Thailand — Thailand’s vast fishing industry is edging towards paralysis as soaring diesel prices — driven by the escalating U.S.–Israeli war with Iran — hammer operating costs and force boats to remain in port.

At Samut Sakhon, the country’s largest fishing hub on the Gulf of Thailand, rows of trawlers now sit idle. Industry leaders warn the fleet could grind almost entirely to a halt within days unless the government intervenes.

Boats Already Docked as Costs Spiral

More than half the vessels at Samut Sakhon are already tied up, according to Jumpol Kanawaree, president of the local Fishmonger Association. Those still heading out to sea are hanging by a thread.

“After April 1, you may see there may be no fish sold,” Jumpol said. With fuel bills surging, many operators can no longer cover wages, crew expenses and basic living costs. “They won’t be able to make ends meet.”

Thailand exported about $7 billion in fishery products last year, supplying major markets including the United States, Japan and China. A prolonged shutdown would ripple through global seafood supply chains.

Diesel Surge Pushes Industry to the Brink

The immediate pressure is fuel. Diesel prices jumped to 38.94 baht per litre on Thursday after government subsidies expired — up sharply from 29.94 baht in February before Middle East tensions erupted.

Fishermen say the breaking point is near. If diesel crosses 40 baht per litre, routine fishing trips will no longer be economically viable.

Crew members are already trying desperate measures to stay afloat. Slower sailing speeds conserve fuel but shrink daily catches.

“Now that the price has gone up, we sail slower,” fisherman Boonchoo Lonluy said. “But that means less fish. We can’t live like this.”

Government Scrambles as Crisis Deepens

Finance Minister Ekniti Nitithanprapas said authorities are preparing emergency relief measures, including supplying B20 biodiesel and palm oil to cushion fuel costs.

Thailand currently holds roughly 100 days of oil reserves, officials say, offering some buffer against further supply shocks.

But on the docks of Samut Sakhon, patience is wearing thin. Around 800 tonnes of seafood normally flow through the market daily from 22 coastal provinces. Traders say the current fuel squeeze is the worst in decades — even more severe than the COVID-19 pandemic.

“If we can’t take more hits, we have to dock,” fisherman Prariyes Maneesumphan said, watching boats unload their final catches of shrimp, squid and mackerel at dawn. “It all comes down to fuel.”

Thai fishing industry nears a standstill as Iran war pushes up fuel costs