Thailand will reduce retail diesel pump prices by 2.14 baht per litre starting Thursday, April 9th, 2026, delivering immediate relief to motorists, businesses, transport operators, and farmers after the government invoked emergency powers to overhaul refinery pricing and ease the strain on the heavily indebted Oil Fuel Fund.
Energy Minister Akanat Promphan, chairing the Energy Policy Administration Committee (EPAC), announced the move following a 2-baht-per-litre cut in ex-refinery (gate) prices for high-speed diesel, including B7 and B20 blends. The reduction, formalized in the Royal Gazette on April 8th, marks the first time the government has used legal authority under the Emergency Decree on Remedying and Preventing Fuel Shortages (B.E. 2516) to compel all six domestic refineries to lower their margins. When combined with associated tax adjustments, including VAT, the full pass-through to consumers will amount to approximately 2.14 baht per litre without requiring additional subsidies from the Oil Fuel Fund.
Retail prices for B7 diesel are expected to fall to around 48.40 baht per litre, while B20 diesel will drop to about 43.40 baht per litre, effective from April 9. The Oil Fuel Fund Management Committee was scheduled to confirm the final pump prices on April 8th.
This intervention comes amid a severe fuel price crisis triggered by escalating global oil costs, largely driven by conflict in the Middle East. Diesel prices in Thailand had surged past the 50-baht-per-litre mark earlier in the week, reaching a record 50.54 baht per litre for B7 after repeated subsidy reductions by the Oil Fuel Fund. Those cuts are to slow the fund’s daily outflows, which had exceeded 1.4–1.7 billion baht in recent days.
The Oil Fuel Fund, used to subsidize retail fuel prices during periods of high global costs, has sunk deeper into deficit, reportedly exceeding 56 billion baht as of early April 2026. Daily diesel subsidies alone were draining the fund at a rate that officials described as unsustainable, prompting urgent measures to shift some burden away from state subsidies toward refinery profit margins.
Refining margins had ballooned in recent months, reportedly reaching levels nearly double those of the previous year (around 17.50 baht per litre in early April), which the government viewed as excessive amid the crisis. Officials, including Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, held meetings with refinery operators to review cost structures and press for the return of “windfall” or excess profits to support consumers. The 2-baht cut targets what authorities describe as abnormal profits rather than core operational costs.
Prime Minister Anutin Charnvirakul had directed the Energy Ministry to accelerate relief measures, leading to this historic intervention. Energy officials stated that refineries would remain profitable after the adjustment and warned of legal penalties, including fines and potential imprisonment, for non-compliance.
Diesel is a critical input for Thailand’s transport, logistics, agriculture, and tourism sectors. Lower pump prices are expected to ease cost pressures on households and businesses that have faced multiple hikes in recent weeks, including sharp increases following subsidy cuts in late March and early April. The government hopes the measure will help stabilize broader economic impacts, such as rising inflation and reduced consumer spending power.
Officials indicated that the reduction could be expanded to 3–5 baht per litre if global conditions allow, with periodic reviews every three weeks. The move also is to provide breathing room for the Oil Fuel Fund, potentially allowing surplus resources to begin addressing its accumulated debt over time.
This development is part of the Thai government’s balancing act between shielding the public from volatile international energy markets and maintaining fiscal discipline for state subsidy mechanisms. Further adjustments to fuel pricing structures and possible tax measures remain under consideration as global oil prices continue to fluctuate.
For the original version of this article, please visit The Pattaya News.
