Fuel prices in Thailand to rise 0.85 baht a litre from September 15

Thailand will raise retail prices for petrol, gasohol and diesel by THB0.85 per litre from Tuesday (September 15), as mounting subsidy costs place increasing pressure on the Oil Fuel Fund.

The Oil Fuel Fund Executive Committee approved the increase at its meeting on Monday (September 14), citing prolonged geopolitical tensions and attacks on oil tankers along key Middle Eastern shipping routes.

The committee also pointed to stalled international negotiations and disruptions that have removed several million barrels per day from global crude oil supplies, including in the Persian Gulf region. Declining global inventories have further tightened supplies, while refinery bottlenecks have pushed refining margins to record levels.

These pressures have driven up prices in the Singapore oil market. On September 14, diesel climbed above US$195 per barrel, while petrol was trading at around US$147 per barrel.

Higher market prices have placed a direct strain on the Oil Fuel Fund, which is currently bearing subsidy costs of about THB770 million a day. The committee therefore considered it necessary to ease the fund's financial burden and preserve sufficient liquidity to help stabilise domestic fuel prices over the longer term.

Oil Fuel Fund rates revised

Alongside the THB0.85-per-litre increase in retail prices, the committee revised Oil Fuel Fund subsidy and levy rates across individual fuel grades.

For regular high-speed diesel, the subsidy will increase by THB1.08 per litre to THB9.83 per litre, resulting in a retail price of THB40.69 per litre. The subsidy for high-speed diesel B20 will rise by THB0.88 to THB13.50 per litre, taking its retail price to THB35.69 per litre. Premium diesel will carry an Oil Fuel Fund levy of THB1.50 per litre.

For petrol, the fund levy will rise by THB0.08 to THB2.56 per litre, bringing the retail price to THB48.93 per litre.

The subsidy for Gasohol 95 will be reduced by THB0.14 to THB4.10 per litre, resulting in a retail price of THB39.94 per litre. The Gasohol 91 subsidy will also fall by THB0.14 to THB4.10 per litre, with the retail price set at THB39.57 per litre.

For Gasohol E20, the subsidy will be cut by THB0.21 to THB7.22 per litre, bringing the retail price to THB34.94 per litre. The subsidy for Gasohol E85 will fall by THB0.62 to THB2.50 per litre, resulting in a retail price of THB30.88 per litre.

The revised Oil Fuel Fund rates will take effect from September 15.

The committee maintained that it would continue using the fund mechanism to keep domestic retail fuel prices at appropriate levels while limiting the impact on living costs. It also urged consumers and businesses to conserve energy and use fuel only when necessary to reduce expenditure and Thailand's reliance on imported fuel.