BANGKOK, THAILAND – Thailand’s energy authorities and special investigators inspected a Shell fuel depot in Bangkok as they responded to soaring demand and public concern over alleged hoarding and high margins.
Inspection at depot ordered from Prime Minister’s office
Officials from the Energy Ministry and the Department of Special Investigation (DSI) visited the Shell facility on Na Ranong Road in Khlong Toei district on 22 March. They checked inventory levels, incoming and outgoing volumes, and the public display of prices at the site.
According to the authorities, the visit followed instructions from the Prime Minister’s Office. The goal was to secure reliable data for managing the current fuel market strain and to address suspicions of stockpiling or excessive profit-taking.
What investigators wanted to see at Shell
The inspection focused on comparing delivery volumes before and after the onset of the latest supply tensions, particularly February versus March. Investigators examined whether deliveries had been reduced despite the tight market.
Chatchai Khunlohit, deputy director-general of the Department of Energy Business, said March deliveries from the depot were significantly higher overall. He added that volumes had peaked during the first week of March.
“Deliveries in March were clearly higher overall, with peaks in the first week of March.”
said Chatchai Khunlohit, deputy director-general of the Department of Energy Business.
No shortage of fuel – but demand exploded
Authorities stated that the core problem was not a lack of fuel, but a sudden surge in demand that overwhelmed production and logistics. They pointed to diesel as the clearest example of the pressure on the system.
Officials said domestic refinery capacity stood at 77 million liters per day, while normal consumption was about 67 million liters. During the crisis, demand rose to more than 100 million liters per day and, on some days, climbed as high as 107 million liters.
Panic buying and canisters in legal grey areas
Part of the demand spike came from consumers buying fuel in canisters or other containers for storage, according to the ministry. This behavior has been particularly visible outside major urban centers.
The authorities stressed they did not encourage such stockpiling and warned that keeping fuel above legal limits could violate regulations. They made an exception, however, for farmers who could prove the fuel was needed for agricultural vehicles.
“We do not promote stockpiling in canisters, and storing fuel beyond legal limits can be a violation, but farmers with proven needs for agricultural machinery are exempt.”
said officials from the Energy Ministry, according to the report.
Government moves to push reserves into the market
To inject more volume into circulation in the short term, the government planned to roll back earlier relaxations on mandatory reserves. This was intended to enable companies to release additional reserve stocks into the market.
The ministry expected noticeable effects within the coming week and expressed confidence that sufficient fuel would be available around the Songkran travel peak. It signaled that easing bottlenecks before the holiday period was a priority.
“We expect tangible effects within the next week and are confident that there will be enough fuel available around the Songkran travel peak.”
said the Energy Ministry, as cited in the report.
Depot prices under scrutiny – focus on jobbers
Inspectors also reviewed the prices at which depots sold fuel to intermediaries known as jobbers. In times of crisis, these middlemen often face suspicion of reaping windfall profits.
According to the ministry, depot prices overall were close to pump prices at filling stations. From the inspectors’ perspective, this indicated there was no “excessive” profit margin at the depot level.
“Depot prices were overall close to retail prices at filling stations, which argues against an excessive profit margin.”
said the Energy Ministry, summarizing the inspection findings.
DSI probes supply chain from refinery gate to pump
Police Major Woranan Srilam, spokesperson for the DSI, said investigators were examining possible “leaks” along the entire supply chain. This included refineries, oil depots and service stations.
“We are investigating possible leaks along the entire chain, from the refinery and oil depot to the filling station.”
said Police Major Woranan Srilam, spokesperson for the DSI.
The DSI also announced support for inspections on waterways to prevent illegal fuel trading. It planned to continue probing any potentially criminal causes alongside the pressure from high demand.
Export stop with exceptions for Laos and Myanmar
In parallel, the government tightened rules on fuel exports and, according to the ministry, ordered that fuel should not be sold abroad at all. This measure was intended to keep all available volumes in the domestic market.
Exceptions applied only to strategic energy partners Laos and Myanmar, with which Thailand was closely interconnected through electricity and natural gas. These cross-border energy links prompted the government to maintain supplies despite the export halt.
“The government has ordered that fuel should not be exported at all, with exceptions only for strategic partners such as Laos and Myanmar.”
said the Energy Ministry, outlining the export policy.
Shell defends its distribution practices
Dr. Srirat Thanarat, responsible for government and organizational relations at Shell Thailand, said the company did not operate its own refinery in the country. Because of this, Shell had to distribute available volumes fairly among jobbers.
“Shell does not have its own refinery and must therefore distribute available volumes fairly to jobbers.”
said Dr. Srirat Thanarat, responsible for government and organizational relations at Shell Thailand.
Shell emphasized that its prices followed market mechanisms but said it tried to keep them “reasonable” in relation to quality. The company stated it had implemented government measures over the past 15 days.
“Prices follow the market mechanism, but we try to keep them reasonable in line with quality and have implemented government measures over the past 15 days.”
said Dr. Srirat Thanarat of Shell Thailand.