BANGKOK, THAILAND – The government temporarily froze the diesel price after reports of escalating conflict in the Middle East triggered fuel panic buying in parts of the country.
Price freeze after run on fuel stations
Drivers in several regions headed to fuel stations in greater numbers on 4 March, fearing rising costs and in some cases stocking up on extra fuel supplies. Reports that fighting involving the United States and Israel against Iran could disrupt oil exports, and might drag on for around four weeks, had sparked concern among consumers.
In response, the government decided to hold diesel prices steady to prevent further hoarding and to calm the market. The move targeted both private motorists and the transport sector, which is highly sensitive to fuel price swings.
Anutin steps in – diesel held at 29.94 baht
Prime Minister Anutin Charnvirakul, who also served as interior minister, stated in a Facebook post that he had instructed the Energy Ministry and relevant agencies to keep the diesel price unchanged. According to his announcement, a litre of diesel was to be fixed at 29.94 baht for 15 days starting 3 March.
The prime minister framed the step as an immediate government measure to stabilise costs amid external shocks. He indicated that the decision was designed to buy time while officials assessed the impact of the Middle East conflict on Thailand.
PTT stations ordered to follow the cap
Anutin also said that all PTT fuel stations would be required to sell diesel at the fixed rate during the price cap period. The government aimed to send a clear signal to consumers and the transport industry that supplies remained secure at the regulated price.
By enforcing a uniform rate at PTT outlets, authorities sought to make further “stockpiling” purchases less attractive. Officials hoped this would reduce pressure on stations and prevent renewed queues at the pumps.
What could happen after 15 days
The head of government stressed that the decision had been taken in his capacity as leader of the administration. He emphasised that it was conceived as a short-term intervention to shield the public from immediate price shocks.
Anutin also announced that once the 15-day period ended, additional measures would be considered to support the population. Any further steps would depend on developments in the regional security situation and their effects on energy markets.
Evacuation plans for Thais in the Middle East
Separately from the diesel decision, the Foreign Ministry prepared emergency measures to assist Thai nationals in the Middle East and evacuate them if necessary. The background was a joint operation by the United States and Israel against Iran, after which Bangkok expected potential risks to civilians in the event of further escalation.
Embassies and consulates were instructed to issue security warnings, advise against visiting high-risk locations and maintain contact with affected people through hotlines. The plans also included arrangements to ensure that information could be updated quickly as the situation evolved.
Hotlines, warnings and flight plans
According to the Foreign Ministry, contingency plans provided for safe gathering points and evacuations via a secure third country. The measures foresaw the use of charter flights or services operated by Thai Airways.
In addition, the Royal Thai Air Force placed suitable aircraft on standby for potential evacuation missions. The combined approach was intended to offer rapid support if conditions in the conflict zone deteriorated.
Opinion: quick fix or market distortion?
The diesel cap functioned like a rapid calming pill for a nervous fuel market, highlighting how sensitively markets and consumers reacted to international crises. It also raised questions about the longer-term role of the state in managing energy prices.
“Should the state intervene more frequently in energy prices, or does that ultimately only distort the market and shift the costs into the future?”
said the article’s concluding commentary, inviting readers to share their views.