BANGKOK, THAILAND – A sharp spike in diesel prices in early 2026 accelerated Thailand’s shift toward alternative fuels and electric vehicles.
The price surge and its trigger
Within weeks, the price of diesel rose by up to 17.80 Baht per liter, driven by geopolitical tensions around the war involving Iran and concern over the Strait of Hormuz. Petrol followed with smaller increases, leading to long queues at filling stations, some of which temporarily ran dry. Drivers suddenly faced pump price boards they had never seen before.
In response, the government issued an emergency decree. From 9 April it capped refinery gate prices, and on 11 April PTT and Bangchak cut retail prices significantly. Since then, diesel B7 had cost 44.40 Baht per liter, Gasohol 95 stood at 42.95 Baht, and B20 diesel at 37.40 Baht.
Energy Minister Akanat Promphan openly cautioned that crude oil supplies for the coming weeks were still not secure. The pressure on the market remained, pushing motorists and policymakers to search more urgently for alternatives.
E20 and E85: Ethanol petrol with pros and cons
Gasohol E20, a blend of 80 percent petrol and 20 percent ethanol, was priced at about 35.95 Baht per liter at PTT after the 11 April cut. That was nearly 7 Baht less than standard Gasohol 95. Drivers of vehicles built from 2008 onwards and certified for E20 could lower their fuel costs per 100 kilometers, even though consumption rose by around two to three percent because of ethanol’s lower energy content.
Gasohol E85, containing 85 percent ethanol, was the cheapest petrol grade at roughly 31.89 Baht per liter. However, it required specially approved so‑called flex‑fuel vehicles, and the additional consumption compared with conventional petrol was clearly noticeable. According to the national energy plan, Thailand aimed to make E20 the standard petrol by 2027 and to phase out Gasohol 91, Gasohol 95 and E85.
Owners of E85‑compatible cars were advised to follow developments closely. The planned phase‑out could affect long‑term availability and refuelling options for these models.
B20 diesel: Palm oil as crisis buffer
A new centrepiece of energy policy was B20, a diesel blend with 20 percent palm oil biodiesel. On 7 April 2026, Bangchak launched B20 at two pilot stations in Si Racha, with a rollout to 40 stations nationwide planned by the end of April, while PTT and Shell prepared to follow. The government kept B20 at least 5 Baht cheaper than standard B7, leaving it at 37.40 Baht per liter versus 44.40 Baht after the April price adjustment.
Higher domestic use of palm oil was designed to support revenues for Thailand’s oil palm farmers. Despite the price advantage, acceptance among heavy‑vehicle operators remained cautious. Truck associations reported reservations over possible engine damage in older vehicles.
Toyota issued clear approval for Hilux and Fortuner models from the 2015 model year onwards to use B20. Older versions and European diesel vehicles were advised to follow manufacturer specifications. For drivers of modern diesel pickups, B20 offered real savings at comparable engine performance, with only a slightly higher fuel consumption of one to two percent.
LPG and NGV: Cheap but limited
LPG (autogas) and NGV (Natural Gas for Vehicles, or CNG) had been established in Thailand for decades. Almost all taxis in Bangkok ran on NGV, easily recognised by the large gas tank in the boot. CNG was the cheapest fuel at Thai filling stations because the state kept its price tightly regulated.
The downside was significantly lower station density compared with petrol and diesel, especially outside major urban areas. Motorists on long inter‑provincial journeys had to plan their routes carefully to ensure refuelling stops. Motorbikes and very small cars were generally not suitable for conversion.
The market for LPG and NGV showed little additional growth despite the fuel crisis. The network had long focused on big cities and main highways, and conversion costs for private vehicles were substantial. For long‑term residents with a fixed location and good access to gas stations, however, the numbers could still work out.
State energy company PTT, which operated Thailand’s largest gas grid, continued to use NGV as a powertrain for urban transport. It kept NGV prices politically stable, reinforcing its role as a low‑cost option in public and commercial fleets.
Electric mobility: Numbers on the rise
The figures for battery‑electric vehicles were striking. In 2025, 120,301 fully electric cars were sold in Thailand, an 80 percent increase compared with the previous year. Their share of new vehicle registrations climbed to just under 20 percent.
In January 2026 alone, EV sales tripled to more than 44,000 units in a single month. The cost advantage was clear: home charging averaged around 0.50 Baht per kilometer, while petrol vehicles, depending on fuel type, cost between 1.70 and 2.30 Baht per kilometer – about four times as much.
Households that could charge at home typically paid around 4.20 to 6 Baht per kilowatt hour. A full charge cycle for a 60‑kWh battery therefore cost roughly 250 to 360 Baht, yielding about 400 kilometers of range. At public DC fast chargers, prices were higher, at around 6 Baht per kWh at PTT sites and up to 8 Baht per kWh at other providers.
Along major highways, fast‑charging stations were available every 30 to 50 kilometers. The EV market was dominated by Chinese manufacturers, led by BYD, which benefited from the state’s EV 3.0 and EV 3.5 incentive programmes. Buyers of battery‑electric vehicles with batteries over 50 kWh still received a government subsidy of 50,000 Baht.
What matters now for drivers
For owners of modern petrol cars built from 2008 with E20 approval, switching to E20 delivered immediate savings without any technical modification. Drivers of newer diesel pickups were encouraged to consider B20: with a 5‑Baht price gap and annual mileage of 60,000 kilometers, the potential saving exceeded 8,000 Baht, assuming the vehicle was compatible.
Motorists planning to buy a new vehicle within the next two to three years gained the clearest long‑term advantage from an electric car. At 15,000 kilometers per year and primarily home charging, they could save around 18,000 to 24,000 Baht annually compared with a petrol vehicle.
Thailand appeared to be moving toward a more diversified transport energy mix. E20 was set to become the new standard petrol grade, while B20 was positioned as a buffer against crude oil price shocks. Electric mobility was advancing faster than originally expected, supported by falling vehicle prices and a growing charging network.
Drivers were advised to check the fuel labels on their cars and consult their owner’s manuals or manufacturers before switching fuels. Incorrect fuel selection could lead to engine damage, particularly with E20, E85 or B20 blends.
Officially published data from PTT and Bangchak as of 11 April 2026 underpinned all price figures cited, which could change with daily adjustments on the Thai fuel market.