BANGKOK – The government of Thailand is taking strong legal action against major oil traders who intentionally held back fuel during a critical shortage. Officials revealed that several fuel distributors stockpiled millions of liters of diesel on boats and trucks, worsening a national energy crunch for their own financial benefit.
According to an update from the Bangkok Post, Justice Minister Pol Lt Gen Rutthapon Naowarat confirmed that multi-agency investigations have exposed widespread price exploitation and intentional supply disruptions. Prime Minister Anutin Charnvirakul has ordered that all individuals and entities involved face the full force of the law without exception.
The fuel crisis peaked between March 20 and March 25, a period heavily impacted by geopolitical tensions and the temporary closure of the Strait of Hormuz. Seizing upon global supply anxieties, several licensed fuel traders chose to hoard their stock to wait for domestic prices to spike.
A joint inquiry by the Royal Thai Police and the Department of Special Investigation (DSI) uncovered staggering figures regarding the withheld fuel:
- Vanishing Supplies: Over 29.2 million liters of diesel—accounting for roughly 20.2% of the country’s entire distribution network—suddenly vanished from the market during the five-day crisis.
- Delayed Sea Shipments: Out of 257 oil tanker trips reviewed by authorities, 23 vessels deliberately slowed down their voyages. These boats carried 50.8 million liters of fuel, creating a massive artificial bottleneck that caused an estimated 380 million baht in economic damage.
- Suspicious Land Transit: Investigators are currently tracking 662 truck trips that traveled with unspecified destinations, carrying an additional 2.1 million liters of suspected hoarded fuel.
At the beginning of March, Thailand held healthy national reserves close to 600 million liters. However, due to artificial hoarding, daily fuel distribution plummeted to a mere 24% of the usual 48-million-liter average, leaving standard petrol stations across provinces like Phetchabun completely dry.
Fuel Hoarders Face Heavy Fines and Prison Sentences
The government will prosecute non-compliant distributors under two primary pieces of legislation. Law enforcement agencies are finalizing charges against companies licensed under Section 7 of the Fuel Trade Act, as well as independent service station operators.
The legal penalties established for these offenses include:
- Delaying Distribution: Charges under Section 30 of the Prices of Goods and Services Act carry a maximum penalty of seven years in prison, a fine of up to 140,000 baht, or both.
- Documentation Violations: Traders who falsified or omitted information on transport logs face charges under Section 30 of the Fuel Trade Act, which carries up to one year of imprisonment and fines reaching 100,000 baht.
The crackdown has expanded past basic stockpiling. DSI Director-General Pol Lt Col Yutthana Mandayanon stated that the agency is managing four large-scale special cases targeting illegal oil networks.
In Ang Thong province, financial investigators traced suspicious banking trails worth over 3 billion baht linked to a fuel depot. Authorities believe the registered business directors were merely corporate nominees, hiding the true beneficiaries of the network.
Meanwhile, in Surat Thani, a depot recorded unusually high sales of 2.16 million liters of gasohol 95 right as retail prices jumped six consecutive times, netting massive undisclosed profits.
A review of maritime transport logs from the eastern region to southern Thailand also exposed 166 explicit regulatory violations, such as vessels failing to declare final destinations or withholding transporter identities.
Energy Minister Akanat Promphan stated that the ministry has filed official complaints as an injured party. The state aims to claw back the excess profits made by these private operators to replenish the national Oil Fuel Fund, which currently faces a heavy deficit.
The government emphasized that state subsidies meant to lower pump prices for struggling citizens were instead intercepted by opportunistic corporations. To ensure transparency, a dedicated task force has been formed to collaborate with the Anti-Money Laundering Office to map out where the illegal profits were funneled. Investigators noted that, so far, no politicians have been linked to the illicit hoarding networks.
