How the 1979 oil crisis changed the course of Thailand’s energy future

On March 11, 2026, the current surge in oil prices may remind many people of a crisis that unfolded almost half a century ago — one of the most intense chapters in Thailand’s modern economic and political history, when a global oil shock forced the country to overhaul its energy system and laid the groundwork for the energy security it has today.

The era of soaring oil prices in 1979-1980 marked a major turning point for Thailand. It was a period that compelled the country to fundamentally rethink and rebuild its energy structure.

1. The cause of the crisis: the second global oil shock

The oil crisis during the premiership of Gen Kriangsak Chomanan was not caused by domestic factors alone. It was part of the global upheaval widely known as the 1979 oil crisis, triggered by:

• The Iranian Revolution, which disrupted Iranian crude exports and sent world oil prices sharply higher.
• Thailand, which at the time relied on imported oil for almost all of its needs, was highly vulnerable to the shock.

As global oil prices more than doubled in a short period, the impact rippled through production costs and living expenses around the world, including in Thailand.

2. Emergency response: saving energy to the point of “switching off the lights”

As oil prices climbed and the government could no longer shoulder the cost of subsidies, Gen Kriangsak’s administration was forced to introduce severe energy-saving measures that people from that era still remember clearly.

• Street-lighting hours were restricted, and in some areas electricity was cut during the early evening, roughly between 6pm and 9pm, to reduce the fuel needed for power generation.
• Petrol stations were also required to stop selling fuel after fixed hours, such as after 10pm.
• Bars and nightclubs were ordered to close earlier in an effort to save electricity.
• The hardship of the period was also reflected in popular culture. It was remembered through the well-known Luk Thung song Namman Phaeng (“Expensive Oil”) by Sruang Santi, which captured the frustration of daily life during the crisis. 

3. The fall of the Kriangsak government

• One of the main triggers behind Gen Kriangsak’s resignation was his decision to raise the prices of oil and cooking gas in early 1980.
• The move provoked fierce opposition from students, labour groups and politicians, leading to major protests. Under mounting pressure, he delivered the line that became one of the most quoted statements in Thai political history: that if he could no longer solve the problem, he would step down in order to preserve peace in the country. 

4. The Prem era: reform and the rise of PTT

When Gen Prem Tinsulanonda took office in 1980, he continued efforts to tackle the crisis in a more systematic and sustainable way. He succeeded Kriangsak in March 1980.

• In fact, the Petroleum Authority of Thailand, later known as PTT, had already been established on December 29, 1978, during the Kriangsak period, at the height of the second global oil crisis. It was created by consolidating state energy operations into a single national entity to strengthen Thailand’s energy security and reduce dependence on foreign companies. However, it was during the Prem years that the organisation truly came into its own and expanded more decisively as a pillar of Thai energy security.
• This was also the period when Thailand began to benefit more substantially from natural gas discoveries in the Gulf of Thailand. Official and industry histories note that commercial gas production from the Erawan field began in 1981, marking the start of Thailand’s domestic gas era and helping the country rely more on its own resources.
• During Prem’s administration, the government strongly promoted the use of Thai-made products to help reduce the trade deficit, while also restructuring taxes to support domestic industry. The mood of the period was later reflected in another famous song, Made in Thailand, followed by Welcome to Thailand.

In hindsight, the oil crisis of 1979-1980 was not only a period of hardship. It was also the moment that pushed Thailand into a new phase of energy reform, with long-term consequences that continue to shape the country’s energy policy today.