BANGKOK, THAILAND – Thailand’s energy minister signaled that planned limits on fuel station opening hours might not be needed after all, citing currently adequate reserves despite tensions in the Middle East.
Planned restrictions on opening hours may be dropped
Fuel station opening hours in Thailand might not have had to be reduced on Monday if the supply situation remained stable, Energy Minister Akanat Promphan said on Thursday. The government had previously floated restrictions as a precaution against possible shortages.
Current indicators suggested the measure might prove unnecessary, according to the minister. The discussion was triggered by the situation in the Middle East and the temporary blockade of the Strait of Hormuz, which had raised concerns over fuel security.
Why the government warned early
The government had deliberately spoken early about potential limits in order to communicate transparently about fuel security. Developments in the war in the Middle East and the blockade of the Strait of Hormuz were the main triggers.
Risks and uncertainties still existed and preparation remained necessary, the minister stressed. If a measure turned out to be unnecessary, however, it would not be implemented for the time being.
Imports and refinery output seen as decisive
The status of outstanding crude oil imports and the current production of refined oil in Thailand were decisive, according to Akanat. Based on these data, limits on refuelling times could potentially be dropped.
“At the moment there is no problem.”
said the minister, referring to the current assessment of the situation.
At the same time, he maintained that the government had to communicate in a
“straightforward”
way.
Oil Fuel Fund losses shrink as global prices fall
The state Oil Fuel Fund had at times lost around 2 billion baht per day by subsidising fuel prices. These losses had now almost disappeared because global oil prices had fallen.
The minister cited market reaction to a ceasefire agreement between the United States and Iran as the reason. Activists were calling on the government to cut pump prices more quickly in response.
PTT tanker “Serifos” back en route to Thailand
Energy company PTT Plc reported that the tanker “Serifos” was due to arrive in Thailand carrying 2 million barrels of crude oil from the Middle East. The vessel had been stuck since 7 March in the Sharjah Ports in the United Arab Emirates.
The tanker had been able to resume its journey thanks to the truce between Iran and the United States. PTT expected the ship to reach Thailand around 21 April.
Import costs soar since Middle East war began
PTT stated that total crude oil import costs had risen by about 230 billion baht since the outbreak of the war in the Middle East. The company attributed this to several factors.
These included higher crude oil prices and the need to source more oil from regions outside the Middle East. According to PTT, these adjustments had made procurement more expensive.