Thailand Secures 101-Day Oil Reserve Amid Global Energy Turmoil

Thailand’s Ministry of Energy has assured the public that the country has sufficient oil reserves for 101 days, despite growing volatility in global oil and liquefied natural gas (LNG) prices driven by geopolitical tensions in the Middle East. Veerapat Kiatfuengfoo, Deputy Permanent Secretary and spokesperson for the Ministry of Energy, said officials are closely monitoring the global energy market as uncertainty surrounding the conflict involving the United States and Iran continues to affect worldwide fuel supplies. The ministry said crude oil prices in July rose by an average of 7–8 US dollars per barrel, or around 10–12 percent, compared with June. While retail fuel prices in neighboring countries have increased in line with global markets, Thailand has continued to cushion the impact on consumers through the Oil Fuel Fund and refinery price management measures approved by the National Energy Policy Administration Committee. As of July 30, Thailand’s strategic oil reserves are sufficient to meet domestic demand for 101 days, helping to strengthen the country’s energy security. The ministry also warned that imported LNG, a key fuel used for electricity generation, has become significantly more expensive. Prices have climbed from around US$11 per million BTU before the conflict to approximately US$18–20 per million BTU, representing an increase of nearly 60 percent. Officials attributed the sharp rise to concerns over global supply, with almost 20 percent of the world’s LNG shipments passing through the Strait of Hormuz, a vital shipping route vulnerable to disruption. Demand is also expected to increase further as countries prepare for the upcoming winter season. To reduce the impact on electricity prices, the Ministry of Energy said it is expanding domestic natural gas production in the Gulf of Thailand, increasing short-term purchases of renewable energy, importing more electricity from Laos, and boosting generation at the Mae Moh power plant to reduce reliance on imported LNG. The ministry said it will continue monitoring international energy markets on a daily basis and stands ready to introduce further measures to help ease the cost of living for the public if necessary.