Government to bypass middlemen to tackle soaring diesel prices in remote regions
The Ministry of Energy moves to cut out intermediaries and grant remote petrol stations direct access to major suppliers to lower regional fuel costs
- The government, through the Ministry of Energy, plans to allow remote petrol stations to bypass middlemen and buy diesel directly from major suppliers.
- This action is a direct response to diesel prices surging to 40.50 baht per litre in isolated provinces, a problem attributed to the "jobber" distribution network and high transport costs.
- The plan will establish a crisis-response framework enabling direct fuel procurement during emergencies, aiming to remove the wholesaler markup from the final pump price.
- Authorities will also increase surveillance to crack down on fuel hoarding and illegal price speculation to further stabilize regional prices.
The Ministry of Energy moves to cut out intermediaries and grant remote petrol stations direct access to major suppliers to lower regional fuel costs.
The Ministry of Energy is set to intervene in the domestic fuel supply chain, proposing a measure that would allow petrol stations in remote areas to bypass middlemen and purchase diesel directly from major "Section 7" traders.
The initiative follows reports of diesel prices surging to 40.50 baht per litre in isolated provinces such as Mae Hong Son. Officials have attributed these localized price spikes to the complex "jobber" distribution network and the high logistical costs of transporting fuel through difficult terrain.
Auttapol Rerkpiboon, the Minister of Energy, explained that many independent stations currently lack direct contracts with the nation’s major oil companies.
During periods of market volatility, these majors prioritise their contracted partners, forcing independent rural stations to source fuel from secondary wholesalers at significant markups.
Restructuring the Supply Chain
To address this disparity, the Ministry is convening a task force to establish a crisis-response framework. The plan would enable operators in remote districts to procure fuel directly from licenced Section 7 traders during emergency periods, effectively removing the "jobber" premium from the final pump price.
Despite regional price pressures, the minister offered firm assurances regarding Thailand’s national energy security.
"Thailand will not face a fuel shortage," Auttapol stated, citing the country’s robust management system and diversified import portfolio.
He added that the ministry has instructed agencies to further mitigate risk by expanding oil sources beyond the Middle East, utilising the global trading networks of PTT Public Company Limited to maintain a steady flow of supply.
Preventing Market Speculation
The Ministry has also addressed reports of stations restricting fuel sales in containers. While provincial energy offices have been told to ensure that legitimate users—such as farmers and fishermen—can purchase the fuel required for their machinery, a "zero-tolerance" approach will be taken toward speculation.
Authorities are expected to increase surveillance of new or unverified customers attempting to purchase bulk quantities in lorries or large industrial containers. Such activities are being flagged as potential hoarding or illegal price speculation during the ongoing energy crisis.
