Emergency Cabinet meets over energy crisis, 6-baht fuel hike

Prime Minister Anutin Charnvirakul convened a special Cabinet meeting at 11am on Thursday to address the worsening energy crisis, following a resolution by the Oil Fuel Fund Administration Committee (OFFAC) to adjust compensation rates for diesel and petrol.

The decision pushed up retail prices for all fuel types by 6 baht per litre with effect from Thursday.

A Government House source said the special Cabinet meeting would discuss measures proposed by various agencies to cushion the impact of the fuel price increase. The Cabinet would also be briefed on the current oil market situation and future price trends, along with the impact on living costs and the management of the Oil Fuel Fund.
Why fuel prices jumped

OFFAC said the one-off 6-baht increase was based on three main considerations.

The first was to curb fuel hoarding by distributors and retailers. The second was to stop smuggling, as domestic fuel prices had fallen well below those in neighbouring countries, encouraging illegal exports. The third was to reflect actual market conditions and ensure the public understood the true pricing mechanism.

Additional relief measures for vulnerable groups are expected to be announced after the meeting.

Ministers and agencies attend

The high-level session brought together ministers and senior officials from key economic and security agencies.

Those attending included representatives from the ministries of Finance, Energy, Agriculture and Cooperatives, Commerce, Digital Economy and Society, Interior, Defence and Justice.

Also present were officials from the National Economic and Social Development Council (NESDC), the Bureau of the Budget and the Office of the Council of State.

PM arrives but declines comment

At 10.10am, Anutin arrived at Government House, driving himself in a Shark Grey BYD Sealion 7 with Bangkok licence plate ฎ 9798, marking the second consecutive day he had driven the vehicle himself.

When reporters asked about the 6-baht fuel price rise, the prime minister responded with a wai but declined to comment before entering the Thai Khu Fa Building.

Shortly afterwards, at 10.17am, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas arrived. Analysts believe the Finance Ministry may introduce targeted measures to help ease the rising cost of living.

What the meeting will cover

The special Cabinet session is expected to review proposals from relevant agencies to soften the impact of the fuel price increase, assess the current oil market situation and future price trends, and discuss the effect on living costs as well as the financial stability and management of the Oil Fuel Fund.