Bangkok: The Oil and Gasoline Regulatory Commission has announced a reduction in the gasoline subsidy by 0.56 baht per liter, although domestic oil prices remain unchanged. This move comes as part of efforts to stabilize the Oil Fund, which has seen its deficit swell to 69 billion baht, marking the highest level since 2026.
According to Thai News Agency, the recent reduction in global crude oil prices did not lead to a decrease in domestic fuel prices due to the existing debt within the Fuel Fund. This debt arose from previous subsidies on domestic fuel during times of high crude oil prices. The Oil Fund Management Committee has decided to adjust the contribution and compensation rates for fuel oils in an effort to maintain the fund's stability. Despite the decline in crude oil futures, with West Texas Intermediate (WTI) and Brent crude both experiencing significant drops, domestic prices remain static.
US President Donald Trump's announcement regarding the cancellation of plans to attack Iran, coupled with ongoing negotiations with the country, has led to a potential increase in oil supply from the Persian Gulf. This development prompted a decrease in crude oil prices, with WTI futures dropping by over 5% and Brent crude following suit. However, the domestic market has not mirrored these international trends due to the persisting deficit in the Fuel Fund.
The Fuel Fund Management Committee's recent resolution included specific adjustments to compensation rates for various fuel types. For instance, compensation for diesel was reduced to 6.89 baht per liter. Diesel B20, Gasohol 95, Gasohol 91, Gasohol E20, and Gasohol E85 all saw adjustments in their subsidy rates, while the levy for gasoline octane 95 increased. These changes in the fund levy rates are effective from today, August 4, 2026.
As of August 2, 2026, the Oil Fund's total deficit has reached 69,782 million baht, driven by significant deficits in both the oil and liquefied petroleum gas (LPG) accounts.