Thailand Faces ‘Worst Energy Crisis in History’ as Diesel Prices Treble
The Energy Ministry plans to reclaim refinery windfall profits to rescue the national Fuel Fund as global prices soar towards $300 per barrel
- Thailand is facing its most severe energy crisis as global diesel prices have nearly tripled, surging to almost $300 per barrel.
- The state's Fuel Fund, used for subsidies, is facing a deficit of nearly 50 billion baht and is at risk of collapse within two months.
- In response, the government is negotiating with oil refineries to reclaim "windfall profits" to rescue the subsidy mechanism.
- Authorities are also implementing modest price increases to prevent hoarding and continuing to subsidize LPG to control the cost of living.
The Energy Ministry plans to reclaim refinery windfall profits to rescue the national Fuel Fund as global prices soar towards $300 per barrel.
Thailand is grappling with its most severe energy crisis on record, with the government moving to seize "windfall profits" from refineries to prevent a total collapse of the country’s fuel subsidy mechanism.
Prasert Sinsukprasert, permanent secretary for Energy, revealed on 3 April 2026 that global diesel prices have surged to nearly $300 per barrel—almost triple the standard rate of $92. The current volatility far outstrips the previous records set during the Russia-Ukraine conflict, which saw prices peak at $150.
The crisis has left the state’s Fuel Fund nearly 50 billion baht in deficit. Although the fund holds a 150-billion-baht credit line, officials warn that at the current rate of depletion, these resources will last only another two months.
Clawing Back Windfall Profits
In response, the Ministry is negotiating with refineries to reclaim excess profits generated by the "War Premium" and inflated refining margins. Authorities are using a five-year average margin of 2.43 baht as a benchmark; any earnings significantly exceeding this are being eyed for redistribution to the public.
While PTT and Bangchak have reportedly offered preliminary cooperation, a final decision on the exact figures and the method of aid is expected this Monday.
The Ministry is considering whether to implement a general price reduction or provide targeted subsidies for the transport sector and vulnerable households.
Combating Hoarding and Inflation
To maintain market stability, the government has implemented modest price increases over the last 48 hours. Prasert explained that these adjustments are necessary to prevent "price shocks" that could lead to hoarding or fuel smuggling across Thailand’s borders.
Simultaneously, the government continues to spend 30 million baht daily to subsidise Liquefied Petroleum Gas (LPG), a move intended to keep food prices stable and protect the general cost of living.
"This is a moment of unprecedented gravity," Prasert stated. "We are seeking a balance that protects the public interest, and we believe our refineries will stand with the Thai people to navigate this crisis."
