BANGKOK, THAILAND – The government raised strategic oil reserves to 98 days and moved to buy more crude oil outside the Persian Gulf to secure supplies amid war in the Middle East.
Government saw energy supply as stable for now
Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn said after a meeting of the Joint Management and Monitoring Centre for the Situation in the Middle East that officials were confident about the energy situation. The government attributed this to additional stockpiles and plans to replace any potential supply disruptions early through new sources.
Authorities said the extended reserves were intended to provide a buffer if the conflict expanded. They also argued that advance planning for alternative imports would help shield the public from sudden shortages.
Crude oil still half dependent on the Gulf
According to Phiphat Ratchakitprakarn, the country at that time obtained 50 percent of its crude oil from the Persian Gulf via the Strait of Hormuz. The remaining 50 percent came from regions outside the Gulf.
Because of this split, the government accelerated negotiations to increase the share of alternative suppliers. Officials said the aim was to reduce exposure to any disruption along the key maritime corridor.
Talks on purchases outside the Persian Gulf
The government stated it was speeding up talks to buy more crude oil from suppliers outside the Persian Gulf. The goal was to close any potential supply gap if the situation in the Middle East worsened or transport routes were affected.
By broadening its supply base, Bangkok sought to maintain stability for both consumers and industry. Officials framed the effort as a precaution rather than a response to an immediate shortage.
US relaxed Russia boycott – Bangkok weighed imports
Another factor, according to Phiphat Ratchakitprakarn, was the decision by the United States to lift its boycott on Russian crude oil exports. He said this opened up an additional option for Thailand.
The Energy Ministry prepared talks to purchase crude oil from Russia in order to prevent bottlenecks and reassure the population.
“The Energy Ministry is preparing discussions to buy crude oil from Russia to prevent shortages and calm the public.”
said Phiphat, Deputy Prime Minister and Transport Minister.
Diesel price cap in place until 16 March
Parallel to its procurement policy, the government monitored diesel prices under instructions from Prime Minister Anutin Charnvirakul. The diesel price was to remain capped until 16 March.
After that date, the responsible agencies were to discuss the future price path again. Officials indicated that any adjustment would consider both market conditions and the burden on households.
More biodiesel to support transport and industry
As part of the management plan, the government intended to increase the biodiesel blend from B7 to B10. This was meant to support the transport sector and industrial users.
Later, the blend for trucks and pick-ups could be expanded to B20 to shore up confidence in the logistics chain and manufacturing. Officials presented higher biodiesel use as a way to ease pressure on conventional diesel demand.
Oil near $100 – price moves in stages
Phiphat acknowledged that the war had pushed the world market price for crude oil to almost 100 US dollars per barrel. He said this made it harder for the government to shield consumers fully from global volatility.
The government had to allow price movements gradually in line with market mechanisms, he noted. At the same time, it aimed to counter the impact on the population as far as possible through reserves, diversification and targeted price measures.