Thailand Freezes Fuel Prices Amid Global Oil Surge to Ease Household Burden

Thailand’s Oil Fuel Fund Executive Committee has approved keeping retail fuel prices unchanged despite heavy pressure from sharply rising global oil prices, in an effort to ease the impact on household living costs. The committee reached the decision on Sept. 11 following a sharp increase in oil prices in the Singapore market. Diesel prices climbed to US$191.91 per barrel, while gasoline rose to about US$148 per barrel. The committee is also considering additional measures to help keep domestic retail fuel prices manageable for consumers amid continued volatility in global energy markets. The sharp rise in oil prices has been driven largely by escalating geopolitical tensions in the Middle East, particularly concerns over attacks on oil tankers and shipping routes around strategic areas including the Strait of Hormuz and the Red Sea. The disruptions have raised concerns over the security of global oil supply chains, pushing up shipping and marine insurance costs. The latest increase has also been compounded by existing supply constraints linked to production limits imposed by major oil-producing groups, while buying by investors seeking to close positions in the futures market has added further upward pressure on prices. The Oil Fuel Fund Executive Committee said it would continue monitoring the situation and consider appropriate measures to ease the impact of international oil prices on domestic consumers. It also called on businesses, households and other sectors to use energy efficiently to reduce their own expenses and help lower Thailand’s reliance on imported fuel.