BANGKOK, THAILAND – Thailand’s government vowed to cap diesel at 30 baht per litre despite soaring global oil prices by deploying its powerful Oil Fuel Fund.
Government moves to shield drivers from global oil spike
Amid escalating geopolitical tensions, particularly the conflict between the United States and Iran, global diesel prices at the key Singapore benchmark had risen from 77 to 87–88 US dollars per barrel. At Thai service stations, however, motorists were meant to feel none of that pressure as the government relied on the Oil Fuel Fund as its main tool.
“Currently, the price is stable at around 30 baht per litre, and the price for household LPG remains fixed at 423 baht per 15-kg cylinder until the end of March 2026,”
said Auttapol Rerkpiboon, energy minister.
Fund contributions cut to keep fuel costs down
Authorities had sharply reduced the fund’s diesel contribution by 2 baht per litre, so that only 0.20 baht per litre was now charged. This strong lever kept pump prices artificially low, with the clear objective of preventing further increases in living costs for citizens.
“We are using the Oil Fuel Fund as a buffer to ensure stability,”
said the minister, adding that the priority was firmly on relieving the burden on the population.
From deep deficit to surplus in just over a year
In October 2025, the fund still showed a major deficit of 14.7 billion baht (about 367 million euros), which was seen as a dangerous imbalance. By 5 February 2026, the balance had shifted to a surplus of around 1 billion baht (about 25 million euros). This turnaround illustrated what the ministry presented as a successful effort to manage the fund more sustainably while still ensuring affordable energy.
Diesel seen as lifeblood of the Thai economy
Diesel was described as the lifeblood of Thailand’s economy, fuelling trucks, buses, fishing boats and agricultural machinery. Any sharp price increase would have immediately affected virtually all goods and services in the country. The government feared an inflationary spiral and treated cheap fuel not only as consumer protection but also as active economic policy, noting that since Auttapol took office in October 2025, prices for diesel and petrol had been continuously reduced with support from the fund.
Experts question how long the buffer can last
Specialists raised critical questions about the strategy, as the fund functioned as an artificial buffer that did not reflect true market prices. Concerns focused on what might happen if global oil prices continued to rise and whether the fund could keep absorbing the additional pressure. The government stated it was monitoring the situation closely and was prepared to take further measures, stressing that the well-being of citizens would remain the top priority.
Signal of stability in a crisis-hit world
In a world shaken by crises, officials framed Thailand’s policy as a signal of stability and capability to act. While other countries struggled with surging energy costs, the Thai government appeared to maintain control over domestic fuel prices, at least for now. Whether the strategy would prove sustainable in the long term depended on global political developments, but many consumers were currently breathing a sigh of relief.