Thailand cuts fuel prices from July 8 as oil fund adjusts rates

Thailand will cut retail fuel prices from Wednesday (July 8), with diesel falling by 2.56 baht per litre and all petrol and gasohol grades dropping by 2.51 baht per litre.

The decision was approved at a meeting of the Oil Fuel Fund Executive Committee on Tuesday (July 7), chaired by Energy Minister Akanat Promphan.

Akanat confirmed that the meeting acknowledged an order from the prime minister issued during the Cabinet meeting on the same day. The order instructed the Energy Ministry to find ways to reduce retail fuel prices as much as possible in line with lower global crude oil prices, while easing living costs for the public and cutting business expenses.

The committee acted under Section 3 of the Emergency Decree on Remedy and Prevention of Shortage of Fuel Oils, BE 2516 (1973), and Clause 3 of Prime Minister’s Order No 15/2019 on measures to address and prevent fuel shortages.

The Energy Policy Administration Committee approved a retail fuel price framework capping gasohol and high-speed diesel at no more than 35 baht per litre. It also assigned the Oil Fuel Fund Executive Committee to set appropriate fuel fund contribution or subsidy rates so that retail prices comply with the approved framework and the prime minister’s order.

Under the measures, petrol and gasohol prices will fall by about 2.51 baht per litre, while high-speed diesel will drop by about 2.56 baht per litre. Standard high-speed diesel will be priced at 34.94 baht per litre.

The reduction reflects expectations that global oil prices will soften after investors eased concerns over tensions in the Middle East. The outlook has also been supported by positive progress in negotiations and the reopening of energy shipping routes through the Strait of Hormuz. On July 7, diesel closed at around US$118 per barrel, while petrol closed at around US$97 per barrel.

For diesel products, the subsidy for standard high-speed diesel will increase by 2.71 baht per litre to 2.90 baht per litre, bringing the retail price to 34.94 baht per litre. The subsidy for high-speed diesel B20 will rise by 2.67 baht per litre to 8.46 baht per litre, lowering its retail price to 29.94 baht per litre. Premium diesel will be subject to a fuel fund levy of 1.50 baht per litre.

For petrol and gasohol products, the fuel fund levy on petrol will be cut by 2.05 baht per litre to 7.99 baht per litre, bringing the retail price to 43.93 baht per litre.

The levy on Gasohol 95 will be reduced by 2.07 baht per litre to 0.42 baht per litre, setting its retail price at 34.94 baht per litre. The levy on Gasohol 91 will also fall by 2.07 baht per litre to 0.42 baht per litre, bringing its retail price to 34.57 baht per litre.

The subsidy for Gasohol E20 will increase by 2.10 baht per litre to 3.71 baht per litre, reducing the retail price to 29.94 baht per litre. The subsidy for Gasohol E85 will rise by 2.27 baht per litre to 4.65 baht per litre, setting the retail price at 25.88 baht per litre.

The new fuel fund rates will take effect on July 8, 2026.

The adjustment is expected to provide immediate relief for households and support industrial activity by lowering operating costs. The Oil Fuel Fund is expected to record net expenditure of about 213.91 million baht per day under the new structure.