BANGKOK – Thailand’s Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn said the government is getting ready to talk with Russia about crude oil purchases. The plan comes as conflict in the Middle East keeps energy markets on edge. As a result, Thailand wants more supply options and stronger reserves at home.
Phiphat, who also leads the Centre for Administration and Monitoring of the Situation of Fighting in the Middle East, said oil security sits at the top of the agenda. He told reporters the government is focused on keeping enough crude on hand if the war keeps shaking global supply.
Thailand has already built up its crude oil stock to lower the risk of shortages. Officials recently raised reserves from 92 days to 98 days of use, giving the country more breathing room if shipments slow down.
This step matters because about half of Thailand’s crude oil moves through the Strait of Hormuz. That route remains a key concern because any disruption there can quickly ripple across prices and deliveries.
The other half comes from elsewhere, yet wider interruptions remain possible, so the Energy Ministry is preparing talks for Russian crude to add to existing supply lines.
Another factor is Washington’s recent move to lift its boycott, or temporarily ease sanctions, on Russian crude oil exports. The change, linked to concerns about stranded cargoes and high global prices tied to the Middle East conflict, makes access easier for importers.
Phiphat called the decision good news, and he said Thailand can now pursue talks through the Ministry of Energy like other countries are doing.
Department of Energy Business Director-General Sarawut Kaewtathip said early assessments show Thai refineries can handle Russian crude. In addition, officials are working with refinery operators and traders who can source these barrels to support a smooth start.
Thailand’s Diesel Price Cap Nears Its End
At the same time, Thailand is dealing with pressure at the pump. The diesel price stabilization policy, which has held prices down with support from the Oil Fuel Fund, expires Monday. Because of that deadline, officials are reviewing fuel pricing to keep prices manageable without overstretching public funds.
The Oil Fuel Fund has carried heavy costs after long subsidy periods. So, the government is weighing gradual changes, including possible excise tax cuts or step-by-step price increases, to soften the impact on families and businesses.
Thailand is also moving to raise biodiesel blending in diesel fuel. Right now, the standard blend is B7, meaning 7 percent biodiesel mixed with petroleum diesel. This policy helps reduce crude oil imports by using locally produced palm oil-based biofuel.
Officials are looking at an increase to B10 soon, and they may consider B20 later. Thailand has used B20 before, so the option is familiar. Higher blends would reduce daily use of base diesel, support local growers, and improve energy security during supply shocks.
- Current blend: B7, cutting base diesel demand by about 1.2 million liters per day
- Next step: B10 in the near term, with B20 as a possible follow-up
- Main upsides: Lower import demand, more stable supply from domestic production, and support for national biofuel goals
These plans follow earlier blend changes during times of high palm oil prices. Still, the current Middle East risk has pushed the focus back toward higher blends.
The Middle East conflict has already tightened global oil flows, and threats around the Strait of Hormuz continue to worry import-reliant countries. Thailand has set up monitoring teams and emergency groups to track developments and prepare backup plans.
Phiphat said Thailand does not expect immediate shortages, pointing to the higher reserves and early sourcing work. Crude already in transit, including shipments that have cleared key choke points, also helps support short-term continuity.
Overall, Thailand’s approach combines import diversification, larger crude oil reserves, a review of diesel subsidies, and expanded biofuel use. As talks with Russia move forward and fuel policies shift, the government aims to protect supply without putting added strain on the economy or everyday living costs.
