Cabinet approves THB20bn loan to shore up Oil Fuel Fund amid energy crunch

The Cabinet has approved an emergency THB20 billion borrowing plan for the Oil Fuel Fund Office (OFFO) to bolster the Oil Fuel Fund’s liquidity and help stabilise retail fuel prices amid a spike in global energy costs linked to Middle East tensions.

Government spokesperson Rachada Dhnadirek said on Tuesday that escalating conflict involving the United States, Israel and Iran since late February 2026 has disrupted global energy supply chains and pushed crude prices higher, adding unavoidable pressure to living costs in Thailand.

Citing data as of April 5, 2026, Rachada said the Oil Fuel Fund’s financial position is at a critical level:

• Net fund position: about THB53 billion in deficit
• Outstanding liabilities: compensation arrears to oil traders totalling THB56 billion

She said the liquidity squeeze has begun to affect operators’ ability to source fuel, raising the risk of domestic shortages if the state does not intervene.

Rachada said both the Oil Fuel Fund Management Committee and the Cabinet approved a debt management plan with the following framework:

• Borrowing amount: THB20 billion (under the public debt management plan)
• Planned drawdown period: June-August 2026
• Repayment window: July 2028-August 2031

“The approval of this loan is an urgent measure to increase liquidity for the Oil Fuel Fund so it can mitigate the energy price shock and keep retail fuel prices within an appropriate range in line with global conditions, without further hitting Thailand’s production and transport sectors,” she said.