Public groups demand energy price overhaul within seven days
Consumer groups urge Energy Ministry to reform fuel pricing, cap refining margins and cut oil prices by 7 baht per litre
Public groups have urged the Thai government to overhaul the country’s energy-pricing structure within seven days, arguing that the move could immediately cut fuel prices by 7 baht per litre.
The proposal was submitted to the energy minister on May 22 by the “Joint Working Group to Review Public Network Proposals on Energy Price Restructuring”.
It centres on five key demands: scrapping the import-parity fuel-pricing formula, capping refining margins at no more than 1.48 baht per litre, restructuring biofuel use, setting a fair ceiling for oil marketing margins, and ending collections from fuel users into the Oil Fuel Fund.
Panthep Puapongpan, chairperson of the Thailand Watch Foundation, said the latest proposals were part of eight earlier demands submitted to Energy Minister Akanat Promphan on April 16. He said several issues could be acted on immediately to reform Thailand’s energy price structure.
After the meeting, several proposals were accepted in principle, particularly the call to review the long-used oil-pricing formula, which public groups say is based on import-parity pricing as if Thailand had no refining capacity of its own.
A key proposal is to revise the fuel-price reference formula by using the Singapore market price from the previous two days while removing all premiums, including freight, insurance and fuel-quality adjustment costs.
The group also wants refining margins capped at what it says is a fair level, based on the seven-year average from 2020 to 2026. If adopted, the group says refining margins could fall by around 6.45–6.57 baht per litre, leaving the margin at about 1.48–1.60 baht per litre.
Energy academic M.L. Kornkasiwat Kasemsri said the current fuel-pricing structure contained “assumed costs” that had been used for more than 30 years, including freight, insurance and oil-reserve costs. He said these should be reviewed and removed so fuel prices reflect real costs, with greater public disclosure.
Rosana Tositrakul, chair of the consumer council’s subcommittee on public services, energy and environment, said capping refining margins at no more than 1.48 baht per litre would reduce what she described as excess refinery profits and return the benefit to the public through lower fuel prices. She also proposed quarterly checks on refining margins.
Public groups also called for an immediate end to biofuel compensation, saying biofuel is now more expensive than base fuel, distorts the market, raises consumer costs and does not benefit farmers as intended.
They also proposed ending Oil Fuel Fund collections from the public and shifting the burden to operators that benefit from excess gains during fuel-price volatility.
The groups further proposed separating the LPG account clearly from the oil account and returning money previously used for cross-subsidies within 90 days to ensure fairness for all fuel users.
They noted that since the first proposal was submitted in April, there had been no concrete progress. They therefore called on the Energy Ministry to act within seven days to show genuine commitment to solving the problem.
Energy Ministry spokesman Pongpol Yodmuangcharoen said all urgent proposals would be compiled and submitted to the energy minister for consideration as soon as possible. Some issues, he said, could be acted on immediately, including the review of B100 prices, which the Energy Policy and Planning Office will study and submit quickly.
The ministry also confirmed that it was pressing ahead with investigations into oil-hoarding networks. Pongpol said evidence was being gathered across the system, with information collected on more than 166 cases before legal action is pursued through relevant agencies.
The five-point proposal calls for the government to:
- Scrap the import-parity oil-pricing formula, which public groups say distorts real costs.
- Cap refining margins at no more than 1.48 baht per litre and review them every three months.
- Restructure biofuel use, allowing blending only when biofuel is cheaper than base fuel.
- Regulate and cap oil marketing margins fairly.
- Reform the Oil Fuel Fund by ending biofuel subsidies, recovering excess profits from oil traders and refineries, separating LPG from oil accounts and ending cross-subsidies.
Public groups say the proposals are aimed at making Thailand’s energy-pricing structure reflect real costs, lowering living expenses and creating fairness across the energy system.
