Govt says Thai diesel at 40.69 baht/litre was below Malaysian and Indonesian market prices

The government said on September 21, 2026, that Thai diesel prices were lower than general market prices in Malaysia and Indonesia, following social-media criticism that fuel was cheaper in the two neighbouring countries. Deputy Government Spokesperson Lalida Perisvivatana cited official price comparisons but stressed that they did not cover special subsidised rates available to eligible groups.

Lalida cited Energy Policy and Planning Office (EPPO) data for September 18 showing Thai diesel at 40.69 baht per litre, compared with general market prices of 42.96 baht in Malaysia and 44.73 baht in Indonesia. Thailand’s price was therefore 2.27 baht and 4.04 baht per litre lower respectively, while Vietnam’s price was close to Thailand’s at 40.75 baht per litre.

Regional diesel comparison excludes special subsidised rates

Lalida acknowledged that Malaysia and Indonesia offered specially priced fuels to eligible users or through particular programmes. The government’s comparison concerned only the general market prices in EPPO’s dataset, not every subsidised diesel price available in either country.

“The government is not saying that Thailand has the cheapest diesel in ASEAN,” Lalida said, referring to the Association of Southeast Asian Nations. Lalida emphasised that cross-country comparisons must account for differences in tax structures, fuel quality, exchange rates, subsidy systems and eligibility criteria.

EPPO’s September 18 infographic also listed diesel-price changes of 35.9% for Thailand, 80.0% for Malaysia and 77.4% for Indonesia, using the infographic’s baseline and calculation method. Lalida interpreted the figures as indicating that global market pressures had not been passed through to Thai diesel prices to the same extent as in some neighbouring countries, although the government statement did not specify the comparison period.

Diesel refinery discount runs until October 31

Thailand’s latest diesel support measure reduces ex-refinery prices for B0, B7 and B20 high-speed diesel by 4 baht per litre from September 16 to October 31, 2026, Lalida said. The Committee on Energy Policy Administration measure is intended to ease cost pressures within the pricing structure and limit further increases at the pump.

The Ministry of Energy, led by Energy Minister Akanat Promphan, has combined refinery-price reductions with Oil Fuel Fund compensation to cushion households and businesses against global energy-market volatility, according to Lalida. The ministry has monitored crude oil prices, refined fuel prices and refining margins while balancing immediate cost pressures with long-term energy stability.

Lalida said the September intervention followed several earlier rounds of support. Ex-refinery diesel prices were reduced by 5 baht per litre from April 24 to May 9, 2026, before the discount was adjusted to 3 baht per litre from May 10–19. The April measures followed a rise in refining margins in early April, for which Lalida cited an average figure of about 14 baht per litre.

A further ex-refinery discount of 2.40 baht per litre applied from July 24 to August 15, using excess gains from the period of high refining margins to help support diesel prices, Lalida said. The current measure increased the discount to 4 baht per litre.

“When conditions change, the measures must also be adjusted so that costs from the global market are not passed on to the public in full all at once,” Lalida said, describing the interventions as a continuing programme rather than a response that began only in September.

Hypothetical diesel prices illustrate the scale of support

Lalida cited EPPO’s September 18 retail-price structure showing that standard high-speed diesel received a 4-baht-per-litre refinery discount and 8.62 baht per litre in Oil Fuel Fund compensation. The resulting retail price in Bangkok and surrounding provinces was 40.69 baht per litre, excluding local maintenance tax.

Removing only the refinery discount from the September 18 pricing structure, while holding all other components unchanged, would add approximately 4.28 baht per litre after value-added tax, according to Lalida’s hypothetical calculation. The resulting figure of 44.97 baht per litre was intended to illustrate the discount’s effect, not forecast an actual pump price.

Removing both the refinery discount and Oil Fuel Fund compensation under the same assumptions would add approximately 13.50 baht per litre, producing a hypothetical price of 54.19 baht per litre. Lalida stressed that this was neither an announced retail price nor a forecast.

Lalida cautioned that changes in government policy could also affect other components of the diesel pricing structure and market conditions. The calculations therefore illustrated the scale of support on September 18 rather than establishing what consumers would necessarily pay without it.

“What Akanat and the Ministry of Energy are doing is not making energy costs disappear. It is about managing the impact so that the entire burden does not fall on the public at once,” Lalida said. Lalida pointed to diesel’s role in transport, agriculture, manufacturing, product prices and the wider cost of living.

Lalida said the Ministry of Energy would continue monitoring global oil prices, refining margins and the Oil Fuel Fund’s financial position to balance support for household living costs with energy stability.