Government to hold urgent energy meeting as oil tops US$100 a barrel

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said that at 4pm the government would hold an urgent meeting at Government House to jointly seek approaches and mechanisms for managing energy prices in both the short and medium term, in order to ease as much as possible the impact on the public and business sector.

As for reports that the Ministry of Energy will propose an emergency decree to relax regulations so that the Ministry of Finance can guarantee loans for the Oil Fuel Fund, he said the matter would be discussed at the meeting.

In dealing with energy prices amid the fighting in the Middle East, the government has previously used the Oil Fuel Fund mechanism to provide short-term support.

However, as global oil prices continued to rise this Monday morning (March 9, 2026), with oil climbing above US$100 a barrel, it has become necessary to review and promptly adjust the management plan before the matter is submitted to the Cabinet meeting tomorrow.

“Although the energy situation carries high risks, I can confirm that Thailand has prepared sufficient oil reserves for more than 90 days of use, providing initial confidence in the country’s energy security.”

However, the energy crisis is not happening for the first time.

Back in 1980, there was an energy crisis and trade conflict involving the United States, Europe and Japan.

At that time, Japan was pressured into allowing the yen to appreciate, forcing it to relocate its production base to ASEAN, and Thailand was able to seize that opportunity by preparing infrastructure such as the Eastern Seaboard.

Meanwhile, in 2022, the Russia-Ukraine war had a major impact on oil prices.

Nonetheless, in terms of long-term adjustment, the government will focus on investing in clean energy infrastructure, particularly by supporting greater use of ethanol produced from domestic sugar cane and cassava as a blend in fuel.

“This measure will not only help reduce imports of crude oil, which is currently expensive and volatile, but will also add value to Thai agricultural products. There is also an idea to promote the production of bioethylene from agricultural crops for use in the plastics industry as a substitute for extracts derived from crude oil.”

In his view, Thailand’s way forward amid the current challenges is to adapt to the era of smart and green industry.

Investment in clean energy is not an option, but the only way forward if Thailand is to avoid missing the global investment wave.

His main energy proposals are as follows:

• Open the way for the private sector to produce and trade electricity from clean energy directly through direct power purchase agreements (Direct PPA), to reduce restrictions and improve flexibility.
• Accelerate solar cell investment on state land, such as at Vajiralongkorn Dam and Ubol Ratana Dam, by bringing in private-sector participation under public-private partnership (PPP) arrangements.
• Propose fundraising through the Thailand Future Fund to finance the development of green power transmission systems, which are in strong demand among foreign investors.

In addition to supporting large companies, the government also has a “big brother helps little brother” policy to bring SMEs into the green supply chain, with tax incentives for large companies that support smaller firms in digital transformation and AI, together with grant support from the Board of Investment (BOI) to upgrade production structures.