Bangkok: The Energy Policy Committee (EPPC) has approved using funds from refineries to increase the diesel subsidy to 4 baht per liter. Despite sharp increases in global oil prices, Thai gas station prices remained unchanged today, as the Energy Policy Administration Committee (EPAC) announced it would divert funds from refineries to increase the diesel subsidy from the previously announced 2.40 baht to 4 baht per liter.
According to Thai News Agency, the Energy Policy Committee (EPC) announced an increase in diesel subsidies from refineries, raising the price from 2.40 baht to 4.00 baht per liter, effective from September 16 to October 31, 2026. This decision results in an additional 4 billion baht in subsidy funds. In total, refineries will subsidize diesel by 27,810 million baht. Combined with the Thai Oil Fund's deficit of over 87,000 million baht, this brings the total increase in energy subsidies to 114 billion baht. The Oil Fund has already borrowed 20 billion baht and awaits the remaining 200 billion baht from the government loan to support further subsidies.
The actual price of diesel in Thailand should be as high as 53 baht per liter. However, it is sold at gas stations for around 40 baht, with a subsidy of approximately 12.43 baht per liter. The Thai News Agency encourages everyone to continue conserving energy to reduce the cost of living and decrease the country's import burden.
Oil prices are rising due to the suspension of crude oil shipments at Yanbu port, Saudi Arabia's Red Sea oil export hub, and Saudi Arabia's announcement of the cancellation of some oil deliveries to European customers. The market is concerned that this disruption to a key oil export route could last for weeks. Qatar stated that the blockade of international shipping routes must not become the new normal and that this crisis will be one of the key issues raised at the upcoming United Nations General Assembly (UNGA) in the United States.
The latest closing prices saw the WTI crude oil contract for October delivery rise by $4.44, closing at $105.83 per barrel. Brent crude oil futures for November delivery rose $3.07, closing at $108.75 per barrel.