Essential Goods Manufacturers Vow to Freeze Prices for Three Months Despite Soaring Fuel Costs
Middle East conflict pushes oil past $100 a barrel, squeezing margins for household brands like Mama and Carabao as logistics and raw material costs spike
- Leading Thai manufacturers of essential goods, including "Mama" noodles and Carabao energy drinks, have pledged to freeze their prices for approximately three months.
- This decision is made despite soaring global oil prices exceeding $100 per barrel, which has significantly increased the costs of logistics, raw materials, and production.
- Companies holding prices steady anticipate negative consequences, such as shrinking profit margins and having to absorb rising costs for materials like plastic packaging.
- In contrast, other companies like Chang Beer are already raising prices and TOA Paint has suspended new orders, highlighting the severe market pressure that makes the price freeze significant.
Middle East conflict pushes oil past $100 a barrel, squeezing margins for household brands like Mama and Carabao as logistics and raw material costs spike.
Leading Thai manufacturers of essential consumer goods have pledged to hold their retail prices steady for the next three to four months, despite intensifying pressure from global oil prices.
The ongoing conflict in the Middle East has sent crude prices climbing above $100 per barrel, threatening to trigger a surge in the cost of living through increased transport, electricity, and production expenses.
Carabao Braces for Impact
Sathien Sathientham, chief executive of the Carabao Group, confirmed that the company will maintain the 10 Baht price point for its energy drinks for at least 90 days. However, he warned that a prolonged conflict would severely impact consumer purchasing power.
"If the situation persists for three months, we can shoulder the costs," Sathien stated. "Our profits may dip, but we can manage in the short term."
He noted that while the company has a 45-day raw material buffer and has successfully pivoted to sourcing materials from China rather than Europe to save costs, logistics remain a major "hidden cost."
Reports indicate that some delivery lorries are being refused full tanks at petrol stations, complicating distribution to the group’s 2,000 CJ More retail branches.
Mama Monitors Triple Threat
Similarly, Thai President Foods Pcl, the producer of "Mama" instant noodles, has admitted that while they will not raise prices immediately, their profit margins are expected to shrink by approximately 1.4%.
Pun Paniangvait, the company’s general manager, explained that plastic packaging costs have already jumped by 20%.
As instant noodles are a price-controlled product, any increase requires government approval.
Pun noted that a price hike would only be sought if a "triple threat" occurs: a simultaneous surge in the price of palm oil, wheat flour, and packaging.
Price Hikes and Supply Disruptions
Not all sectors are holding firm. Chang Beer has already announced price adjustments, with cases of Chang Cold Brew rising by up to 20 Baht. Further increases for Chang Classic are expected following 15 March 2026.
Meanwhile, TOA Paint (Thailand) Pcl has taken the drastic step of temporarily suspending new orders.
In a letter to partners, the company cited direct hits to the petrochemical supply chain and international shipping delays. TOA stated it cannot currently guarantee delivery volumes for existing orders due to the volatility of raw material costs and fuel prices.
The Ministry of Commerce is scheduled to meet with manufacturers on 16 March 2026 to discuss national price-maintenance strategies.
