BANGKOK, THAILAND – Thailand’s state oil fund reduced diesel subsidies from 15 April, citing lower global prices for refined oil products.
Official announcement from the Fuel Fund Office
The Fuel Fund Office issued a notice from the Executive Committee of the Fuel Fund on 14 April, identified as Announcement No. 46. The document set out the rates for contributions to the fund and the levels of compensation, reimbursement and other support for different fuels.
According to the announcement, the new framework determined how much fuel sellers must pay into the fund and how much support specific fuel types would receive. These measures were applied across conventional fuels and ethanol-blended products.
New diesel subsidy rates from 15 April
For regular high-speed diesel, often referred to as standard diesel, the fund provided a compensation or subsidy of 5.89 Baht per liter. This rate was part of the revised support structure taking effect in mid-April.
For B20 diesel, the subsidy was set at 11.67 Baht per liter, also effective from 15 April. The higher rate reflected the specific treatment of this diesel blend within the fund’s compensation scheme.
Reason: falling global prices for refined products
The announcement stated that the adjustment was based on a decline in the world market price for refined oil products. As international prices for these refined products went down, the fund recalibrated its support levels.
As a result, the amount of financial support drawn from the fund for diesel was reduced. The revised rates were presented as a response to the changed price environment on global energy markets.
Rules for gasoline: contributions into the fund
For gasoline, the notice specified a contribution into the fund of 9.66 Baht per liter. This meant that gasoline did not receive a subsidy but instead generated income for the fund.
According to the announcement, there was no compensation from the fund for gasoline. The rules clearly separated gasoline from the diesel and ethanol-blended products that qualified for support.
Gasohol and E20: compensation from the fund
For Gasohol 95 and Gasohol 91, the fund granted compensation of 2.84 Baht per liter. These ethanol-blended fuels thus benefited from a moderate level of support.
For E20 fuel, the compensation level was set at 2.26 Baht per liter. The notice did not elaborate further on the rationale for the different rates among the ethanol blends.
Public debate over timing and impact
The announcement prompted questions about how the reduced diesel subsidies might affect consumers and the transport sector. The discussion centered on whether the cuts were appropriate given the fall in world market prices or whether they came at a difficult moment for households and businesses.
Members of the public were invited to share their views on how the new fund rates could influence fuel prices, daily life and the wider Thai economy. The debate highlighted concerns over cost of living and the impact of energy policy on economic activity in Thailand.