Thai Oil Fuel Fund deficit widens as Hormuz turmoil shakes markets
Fresh tensions around the Strait of Hormuz rattled global energy markets, while Thailand moved to hold diesel prices steady despite a widening Oil Fuel Fund deficit.
- Escalating tensions in the Middle East, specifically Iran's threat to close the Strait of Hormuz, have caused turmoil in global energy markets.
- The crisis has triggered a sharp increase in global crude oil prices, with Brent crude rising 5-8% and analysts predicting prices could reach $105-$115 per barrel.
- Amid these rising global costs, Thailand's Oil Fuel Fund deficit has widened to over THB 62 billion, driven by daily compensations to keep domestic diesel prices stable.
The Ministry of Energy reported on April 20, 2026, that Thailand’s energy situation and the global outlook had come under renewed pressure after tensions in the Middle East flared again.
The ministry said the crisis escalated after the US Navy fired warning shots and seized an Iranian vessel in the Gulf of Oman for allegedly violating the blockade.
Iran condemned the move as piracy at sea, threatened retaliation and announced the closure of the Strait of Hormuz, forcing at least 13 oil tankers to turn back.
The episode also shook the ceasefire due to expire on April 21, 2026.
Although the United States sent representatives to Islamabad for talks on April 20, Iran refused to attend unless the blockade was lifted.
President Donald Trump also threatened to strike power plants and bridges if Iran ignored the agreement.
The turmoil has fuelled concern that a global energy supply crisis could spill over into inflation, pushing energy prices sharply higher, with Brent crude rising about 5–8% from the previous close of US$90.38 a barrel and WTI climbing around 4–7% from US$83.85.
Analysts said oil could reach US$105–US$115 a barrel if the situation drags on.
Based on data dated April 20, 2026, Thailand had enough oil to meet demand for about 110 days, comprising 25 days of legally required reserves, 25 days of commercial reserves, 37 days of oil in transit and 23 days of confirmed supply.
For diesel production and sales, based on April 18 data, Thailand produced 80.51 million litres of diesel and sold 52.88 million litres.
Based on PTT prices, retail diesel B7 stood at THB42.90 per litre, diesel B20 at THB35.90 per litre, Gasohol E20 at THB35.45 per litre, Gasohol 95 at THB42.45 per litre and Gasohol 91 at THB42.08 per litre.
Compared with other ASEAN countries, Thailand’s average petrol price of THB42.45 per litre was lower than the THB46.95–THB87.18 range seen in the Philippines, Cambodia, Lao PDR, Myanmar and Singapore.
Thailand’s diesel price of THB42.90 per litre was also below the THB44.29–THB117.91 range recorded in Indonesia, Cambodia, Malaysia, the Philippines, Lao PDR, Myanmar and Singapore.
The estimated status of the Oil Fuel Fund as of April 20, 2026, showed a deficit of THB62.04664 billion, while diesel compensation remained at about THB185.76 million per day.
