Thailand’s oil reserves stand at 109 days amid renewed tensions
The Energy Ministry says Thailand still has 109 days of oil reserves and that diesel production remains above domestic demand, despite renewed tensions in the Middle East.
The global energy market remains highly volatile after tensions in the Middle East flared up again, despite earlier reports of a two-week temporary ceasefire agreement between the United States and Iran, which had pushed world oil prices lower on hopes that shipping through the Strait of Hormuz would return to normal.
According to the Energy Ministry’s energy situation report on Thursday (April 9), Iran’s Islamic Revolutionary Guard Corps (IRGC) has once again announced a suspension of shipping through the Strait of Hormuz, citing Israel’s attack on Lebanon.
The move has immediately tightened conditions along one of the world’s main oil transport routes. Around 800 to 2,000 oil tankers and cargo vessels are believed to be stranded in the Persian Gulf and the Gulf of Oman.
Although efforts have been made to open alternative routes or allow vessels of certain nationalities to pass, the overall situation remains high-risk, placing fresh pressure on global oil prices and energy costs.
Thailand feels the impact directly as hidden costs surge
The Energy Ministry said Thailand still relies heavily on crude imports from the Middle East, which account for 52% of total imports. As a result, domestic oil prices are closely tied to the Asian market, particularly Dubai crude, which has moved significantly differently from western benchmarks such as West Texas Intermediate (WTI) and Brent.
The war has also created additional hidden costs, including crude premiums and war risk premiums, such as sharply higher insurance and freight charges. This means the real cost of crude is now higher than the headline market price.
The ministry is therefore reviewing data from refinery operators in order to adjust the pricing structure so that it better reflects actual costs, with the aim of improving transparency and fairness in Thailand’s energy system.
Thailand’s oil stocks remain secure at 109 days
On energy security, the Energy Ministry confirmed that, as of April 9, Thailand’s oil reserves remained strong and could cover demand for 109 days. These reserves comprise 25 days of legally required stock, 22 days of commercial reserves, 31 days of oil in transit, and a further 31 days already secured for delivery.
As for diesel, the country’s main transport and economic fuel, Thailand was able to produce 83.37 million litres per day as of April 7, while actual consumption stood at 68.69 million litres per day, reflecting production capacity that remains above domestic demand.
Oil Fuel Fund stays deep in the red despite lower fuel prices
In the domestic retail market, data from PTT Plc showed that B7 diesel was priced at 48.40 baht per litre, while E20 petrol stood at 38.95 baht per litre and gasohol 95 at 43.95 baht per litre.
Compared with other ASEAN countries, Thailand’s fuel prices remain significantly lower. Petrol prices across the region range from 52.47 to 87.31 baht per litre, while diesel prices range from 55.28 to 118.10 baht per litre. Most recently, Malaysia raised its diesel price by a further 5.44 baht per litre.
However, the continued effort to hold down domestic energy prices has left the Oil Fuel Fund under severe strain. As of April 9, the fund was running a deficit of 59 billion baht and was paying an average of more than 1.22 billion baht a day to subsidise diesel prices.
The Energy Ministry said it would continue to monitor the situation closely and adjust measures to maintain a balance between easing the public’s cost of living, preserving energy stability, and managing the financial burden on the fund, amid ongoing geopolitical uncertainty weighing on global energy markets.
