Hormuz strain leaves energy market tight, fuel fund deficit tops Bt61bn
Thailand has 110 days of oil reserves, but the Oil Fuel Fund deficit has widened to Bt61.59 billion as tight global supply keeps energy costs elevated
Thailand’s energy market remains under pressure from the crisis around the Strait of Hormuz, with the Ministry of Energy warning that global supply conditions are still tight even as the country maintains oil reserves equivalent to about 110 days of demand.
At the same time, the Oil Fuel Fund deficit has widened to Bt61.591 billion, underlining the growing fiscal strain from efforts to cushion domestic energy costs.
In its April 16 energy update, the ministry said the Middle East conflict remained highly uncertain.
While there have been more hopeful signs that the United States and Iran could reach an agreement soon, continued maritime pressure around Iranian ports and shipping routes in the Strait of Hormuz has left investors doubtful that tensions will ease quickly.
As a result, the global energy market is still facing tightness and early fuel shortages, with damaged infrastructure likely to take months to recover even if the fighting ends.
Tight supply keeps oil prices elevated
The ministry said the prolonged disruption had helped drive US oil exports to record highs while keeping global energy costs elevated. As of April 16, quoted crude prices were reported at US$90.54-US$91.88 a barrel for WTI, US$94.33-US$95.29 for Brent, and US$103.01 for Dubai crude, reflecting still-tight supply conditions.
Thailand holds 110 days of oil reserves
Despite the external pressure, Thailand’s domestic oil buffer remains intact.
Based on the ministry’s April 16 figures, the country has enough oil for about 110 days of demand.
That consists of 25 days of legally required reserves, 23 days of commercial reserves, 34 days of oil currently in transit, and 28 days of confirmed procurement.
Thai retail prices still below many regional peers
The ministry also said Thai retail fuel prices remain below those in many Asean markets.
Gasoline in Thailand averaged Bt42.95 a litre, compared with roughly Bt48.89 to Bt87.15 in Cambodia, the Philippines, Laos, Myanmar and Singapore.
Diesel in Thailand stood at Bt44.40 a litre, compared with around Bt50.01 to Bt117.88 in Malaysia, Cambodia, the Philippines, Laos, Myanmar and Singapore.
Fuel fund deficit widens to Bt61.59bn
The growing stress is most visible in the Oil Fuel Fund.
The ministry estimated that, as of April 16, the fund was running a deficit of Bt61.591 billion.
Diesel compensation alone was costing about Bt188.28 million a day.
The figures suggest Thailand still has room to manage immediate supply risks, but the longer the Hormuz disruption lasts, the more difficult it may become to shield households and businesses from high energy costs without adding further pressure to the fund.
