BANGKOK, THAILAND – Thailand approved a cut to the diesel excise tax, but drivers still had to wait for lower pump prices as the measure awaited election authorities’ consent.
Relief on the way – but not immediately
The Thai government responded to persistently high fuel prices with a cabinet decision to reduce the diesel excise tax. However, motorists could not expect instant relief. Implementation still required approval from the Election Commission, which would determine when prices actually fell.
“We must proceed step by step,”
said Phiphat Ratchakitprakarn, deputy prime minister.
“Previous governments reduced the tax to zero – but we must carefully weigh the financial impacts.”
said Phiphat, deputy prime minister.
How much drivers stood to save
The decision covered a reduction of one baht per liter of diesel. At the time, the excise tax on diesel ranged between five and six baht per liter, depending on the grade. For a 50‑liter tank, the change meant a saving of 50 baht, roughly 1.25 euros.
Frequent drivers could see the benefit add up quickly. Truck drivers, taxi drivers and others who relied on diesel for work were expected to gain the most from the relief. The wider transport sector would also be eased, which could in turn influence the prices of many goods.
Budget impact of the tax cut
The relief carried a significant fiscal cost. The tax reduction was projected to cut state revenue by about two billion baht per month, equivalent to around 50 million euros. The Finance Ministry was examining how to offset the lost income, including through higher value‑added tax receipts from imports.
“The measure serves solely to alleviate the hardship of the population. It is a temporary reduction.”
said Lavaron Sangsnit, permanent secretary of the Finance Ministry.
Why the government refused to wait
During internal discussions, some voices argued for delaying the measure until after a new government was formed. The cabinet rejected that option.
“This is an urgent public concern,”
said Lavaron.
“We cannot wait two weeks while prices have already risen. Immediate measures are needed to mitigate the impact on citizens.”
said Lavaron, permanent secretary of the Finance Ministry.
The ongoing energy crisis and conflicts in the Middle East continued to weigh on Thailand’s economy. Diesel prices remained a key driver of inflation and of everyday living costs for many people.
No shortages expected – government moves to secure supplies
There was also positive news on fuel availability. A review of 22 fuel depots in seven provinces found no irregularities. Average stocks were around 10,000 liters per depot, while larger depots operated by PTT and Shell in Songkhla were less than 50 percent full.
Despite that, production and distribution of diesel and gasoline remained stable. For April, imports of 24 million barrels of crude oil were planned, with another 8 million barrels scheduled for May. Authorities reported that supply conditions were sufficient to meet domestic demand.
Thailand reinforces its energy self‑reliance
Prime Minister Anutin Charnvirakul ordered that gasoline refined within Thailand be used with priority for the domestic market. Exports were instead directed to Laos. This step was estimated to boost national energy security by about five million liters per day.
Officials framed the move as an important way to reduce dependence on international supply chains. Although the situation remained tense, the government sought to signal that it was taking active steps to shield households from rising costs. The planned tax cut was presented as a clear indication that citizens would not be left to face higher prices alone.
When would the relief arrive?
The exact date when the tax cut would be reflected at fuel pumps depended on the Election Commission. Once the commission gave its approval, the excise department could proceed with implementation. Motorists were advised to follow announcements from the government and fuel retailers closely.
Drivers who regularly filled up with diesel were told they could look forward to imminent relief once the final clearance came through. The state, for its part, aimed to show that it would not remain idle in the face of the ongoing crisis.