Commerce Ministry says fuel pricing beyond its authority

Commerce Minister Suphajee Suthumpun has clarified that the Ministry of Commerce has no authority to set or announce fuel prices, amid criticism over the across-the-board 6-baht-per-litre increase in all fuel types that took effect on Thursday, including old fuel stocks.

She said fuel pricing falls under the authority of the Ministry of Energy, not the Commerce Ministry.

No legal power over fuel prices

Suphajee said that under the Price of Goods and Services Act 1999, the Ministry of Commerce is responsible for overseeing consumer goods, essential items and services, but fuel is not covered by its pricing powers because it is governed by separate legislation under the supervision of the Ministry of Energy.

She said the Ministry of Energy is responsible for determining the pricing mechanism and announcing retail fuel prices.

“The Ministry of Commerce cannot set or announce oil prices because there is no legal basis for it to do so,” Suphajee said.

She added that once prices are officially announced, the ministry would step in to ensure strict compliance, including requiring the clear display of prices and checking the accuracy of fuel dispensers at service stations.

Government preparing support measures

Suphajee acknowledged that the latest fuel price increase was driven by several external factors beyond the government’s control.

She said the government had prepared support measures to cushion the impact, while future oil price trends were being assessed by the Ministry of Energy together with the centre monitoring the Middle East conflict situation, with broader response measures also under consideration.

Commerce Ministry to monitor goods prices closely

Suphajee said the Ministry of Commerce would closely manage the prices of goods under its responsibility in order to reduce the impact on businesses, consumers and farmers.

She said the ministry would use a combination of negotiations with the private sector, stock monitoring and fair consideration of production costs. If new raw materials carry higher costs, or new products reflect those costs, appropriate price adjustments will be considered.

The ministry is also preparing to use both regulatory measures and market mechanisms in parallel, while giving special attention to vulnerable groups. The Ministry of Finance, she added, has introduced additional measures to help the private sector and manufacturers.

Fuel is a controlled good, but price hikes need no approval

Reporters noted that although fuel is classified as one of 59 controlled goods under the law, the Ministry of Commerce does not have the authority to require producers or traders to seek approval before raising prices.

Its role is limited to ensuring that selling prices are clearly displayed for consumers.