Ekniti warns THB600bn deficit exposes Thailand’s energy risk
Finance Minister Ekniti Nitithanprapas says Thailand’s Q2 current-account deficit shows why it must accelerate its shift from imported oil
- Finance Minister Ekniti Nitithanprapas warned that a THB600 billion current-account deficit in Q2 2026 exposes Thailand's economic vulnerability.
- The deficit is attributed to the country's heavy reliance on imported oil, which makes the economy highly sensitive to global price fluctuations and creates an energy security risk.
- To address this, the government plans to accelerate its energy transition by investing in solar power, energy storage, and electric vehicles.
- A THB200 billion fund will be used to "Jump Start" these projects, aiming to reduce fuel imports and strengthen long-term energy security.
Thailand’s THB600 billion current-account deficit in the second quarter of 2026 has exposed a structural weakness created by the country’s reliance on imported oil, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas has warned.
The deficit emerged as Thailand’s gross domestic product expanded by 1.9% year on year, slowing from growth of 2.8% in the first quarter, according to figures released by the Office of the National Economic and Social Development Council (NESDC).
Thailand recorded a current-account deficit of US$17.6 billion in the second quarter, equivalent to more than 12% of GDP.
It was the country’s first deficit in eight quarters and marked a sharp reversal from a surplus of US$1.4 billion in the preceding quarter.
Ekniti said the deficit, equivalent to approximately THB600 billion, was another indicator of the Thai economy’s vulnerability.
Deficit exposes imported-oil dependence
Ekniti attributed the vulnerability to Thailand’s heavy reliance on oil imported from Middle Eastern countries, particularly to support a transport sector that remains largely dependent on fossil fuels.
He said this left the economy highly sensitive to movements in global crude-oil prices, with higher import costs directly affecting the country’s economic stability.
“The war in Iran has become a turning point and a warning that Thailand cannot wait for repeated energy-price crises before taking action,” Ekniti said.
He has previously cited Thailand’s dependence on imported oil and gas as a reason for accelerating the country’s energy transition.
The government must therefore speed up investment in solar rooftops, power-grid development, energy-storage systems and electric vehicles, he said.
Ekniti described these projects as infrastructure for the future that could reduce imports while strengthening Thailand’s long-term energy security.
The Finance Ministry also aims to accelerate the transition of public transport to electric vehicles.
Discussions with transport operators on targets and proposed spending plans are due to take place this week.
THB200bn fund to provide transition ‘Jump Start’
The projects are expected to draw funding from the THB200 billion allocated to the second plan under the emergency decree authorising the Finance Ministry to borrow money to address the energy crisis and support the country’s energy transition.
Ekniti said the borrowing should not be viewed solely as temporary government spending.
The funding is intended to improve Thailand’s ability to produce and manage energy, reduce fuel imports and limit the impact of volatile global energy prices.
He added that the investment could also establish a foundation for new private-sector projects.
The funding would act as a “Jump Start” to accelerate structural change and generate benefits extending beyond the immediate economic situation, he said.
“This funding will be an important ‘Jump Start’. Although it may not transform everything, it will mark the beginning of the three goals we have set: advancing the energy transition, providing relief and reducing electricity and transport costs, and supporting domestic industries,” Ekniti said.
