BANGKOK – Thailand is facing its steepest jump in fuel prices in years. On March 26, pump prices rose by 6 baht per liter, sending diesel and gasoline up by as much as 22 percent overnight. The surge followed fresh turmoil in the Middle East, but many people across Thailand say officials were unprepared.
The fallout spread quickly. Airlines added fuel fees. Hotels saw a wave of cancellations before Songkran. Delivery firms cut routes, and some truckers stopped driving altogether. In the north, long lines formed at gas stations, where many customers could buy only 500 baht worth of fuel. Chiang Rai and Chiang Mai have been hit especially hard because local prices are higher and supplies are tighter.
Here’s a closer look at what caused the spike, who is feeling the pressure, and why the government’s response is under fire.
Oil prices climbed fast after supply worries in the Middle East pushed global markets higher. In just a few days, Singapore diesel benchmarks rose from about US$198 to more than US$242 per barrel. Because Thailand depends heavily on imported fuel, the impact showed up almost at once.
At the same time, the Oil Fuel Fund was already under heavy strain, with a deficit of more than 35 billion baht. It could no longer cover the full cost gap. Late on March 25, officials scaled back subsidies. As a result, every major fuel type increased by about 6 baht per liter starting at 5 a.m. on March 26. Diesel, which supports transport and farming, rose by roughly 18 percent. Some premium fuels went up even more.
Drivers reacted fast. On the night before the increase, lines stretched across the country as people rushed to fill their tanks. Many stations set purchase limits to slow demand and avoid running out too quickly.
The government said the change was needed to keep the fund from collapsing. Still, many critics say the move came too suddenly and gave families, drivers, and businesses little time to adjust.
Airlines Add Fuel Fees as Costs Rise
Thai airlines felt the pressure right away. Thai Airways, Bangkok Airways, Thai AirAsia, and Nok Air all reported higher operating costs after the fuel hike. Several carriers either introduced new fuel surcharges or raised existing ones, mostly on international flights.
For now, domestic ticket prices have stayed more stable because airlines don’t want to push away Songkran travelers. Even so, fuel costs are squeezing margins. According to one industry source, airlines may have to adjust fares soon if oil prices remain high.
That’s already affecting travel plans for the April 13 to 15 holiday. Some passengers booking flights have found higher prices, while others have canceled because of added costs and uncertainty.
Tourism could take a broader hit as well. If airlines trim schedules or demand weakens, visitor numbers may fall, especially from Europe and the Middle East, where regional tensions are already affecting travel.
Hotels Face a Drop in Bookings Ahead of Songkran
Songkran usually gives Thailand’s tourism sector a big lift. This year looks very different. Many hotels say bookings have fallen sharply, especially in northern destinations such as Chiang Mai and Chiang Rai.
One hotel owner in Chiang Mai said, “We expected a busy period, but calls for cancellations started right after the price announcement. People worry about driving costs or higher transport fares.” In response, some hotels have lowered room rates by as much as 40 percent to attract last-minute guests.
Road trips are also losing appeal. Many families are worried about paying more at the pump or arriving at stations with little fuel left. Although buses and trains offer an option, plenty of travelers still prefer using their own cars during a holiday.
A recent NIDA poll found that 14.8 percent of people who planned to travel had already canceled their trips. Others cut back by choosing shorter getaways or staying home altogether. Because of that, hotels in popular tourist areas are now rushing to fill empty rooms.
With fuel costs up and consumer confidence down, this could turn into one of the quietest Songkran seasons in recent years.
Couriers and Truckers Pull Back as Diesel Costs Jump
The logistics sector is under serious strain. Most trucks and delivery vans run on diesel, so the sudden increase has pushed operating costs much higher. For some companies, the numbers no longer work. They have parked vehicles rather than take losses on every route.
Small delivery operators in rural areas are feeling the pain first. One driver near Chiang Rai told the Chiang Rai Times he skipped jobs because the extra cost of fuel wiped out his earnings. Construction activity has also slowed in some places because heavy vehicles and machinery are sitting idle.
Businesses now face a hard choice. They can pass the cost on to customers and risk losing sales, or they can absorb it and accept lower profits. Either way, the pressure could soon raise prices for everyday goods.
The Thai Transportation Operators Association also reported slower ticket sales for long-distance buses. Bookings ahead of Songkran are well below normal. Many operators now plan to hold more seats for late sales, hoping fuel prices settle down before the holiday.
Northern Thailand Faces the Worst Fuel Shortages
Northern provinces have taken the biggest hit so far. In Chiang Rai and Chiang Mai, many stations ran low or sold out quickly after the price jump. Some locations received less than 10,000 liters of diesel per day, and that supply disappeared within hours.
In Chiang Rai, drivers began lining up at stations as early as 5 a.m., including at the PTT station in Mae Sai. Many waited for hours and still could buy only 500 baht worth of fuel, which was not enough to fill a tank. Even with diesel nearing 40 baht per liter in some areas, van operators kept fares unchanged.
Chiang Mai saw the same pattern. Long lines formed at stations near Don Chan Interchange and Mae Rim. Pickup trucks, tour buses, and songthaews waited 30 minutes or longer. Some drivers left without fuel at all. On Chotana Road, one station reportedly sold through 8,000 liters in just four hours.
Residents described heavy panic buying before the increase took effect. Some people filled spare containers at home, while others said construction work stopped because diesel for equipment ran out.
Tour operators are worried too. Buses used for day trips and airport transfers are having trouble finding steady fuel supplies. That has already disrupted some tours in the north.
Chiang Rai and Chiang Mai Feel the Price Rise More Than Other Areas
Fuel prices increased nationwide, but the north has faced extra pressure because demand is high and supply lines are less flexible.
After the March 26 increase:
- Diesel in some areas moved close to or above 39 baht per liter
- Gasohol 95 and similar fuels rose to about 40 to 41 baht per liter in some reports
- Premium fuels climbed even higher, in some cases by as much as 8 baht
Those prices hit especially hard in places where people depend on personal vehicles, pickup trucks, or small vans every day. Farmers and transport workers in rural Chiang Rai are seeing costs rise fast. In Chiang Mai, where tourism relies on road travel, the impact is just as clear.
Compared with Bangkok, stations in the north have imposed tighter limits and run out of stock more quickly. As a result, many drivers have started arriving early or shifting to public transport when they can. Still, frustration is building as lines grow longer.
Government Response Draws Strong Criticism
Many people across Thailand are asking why officials did not act sooner. The Oil Fuel Fund had already been losing around 2.5 billion baht per day to keep prices down. Once global oil costs surged, that support became too expensive to maintain.
Opposition figures and social media users say the government handled the situation poorly. “They waited too long and then shocked everyone with a big jump,” one Chiang Mai resident said. Much of the criticism centers on the late announcement and the lack of a slower, step-by-step increase.
Some critics also point to warning signs from the Middle East that appeared before the price spike. Others say the government should have offered faster help for low-income families, truckers, and small businesses. Public concern is already clear in polling, including the NIDA survey that showed rising anxiety over fuel and holiday travel.
In response, the cabinet announced seven support measures. These include continued targeted subsidies for some fuel types, including E10 and E20. Officials say the Oil Fuel Fund needed room to recover. Deputy Prime Minister and Finance Minister Ekkanit Nitithanprapas said keeping strict price caps could have made hoarding and shortages even worse.
Transport Minister Phiphat Ratchakitprakarn said Thailand still has enough fuel for Songkran. He also predicted that more people will use public transport and choose shorter trips. In addition, expressways and motorways on major routes will be free during the holiday to help cut travel costs.
Even so, many people remain doubtful. Some believe the government should have acted earlier by cutting taxes, building larger reserves, or introducing targeted relief sooner.
Daily Life and the Wider Economy Are Already Feeling the Pressure
Higher fuel prices affect almost every part of the economy. Transport costs rise first, and then food, goods, and services often follow. Farmers and wholesalers must spend more to move products, so households could soon see higher prices at markets and stores.
Small businesses are under pressure too. Many already work on thin margins, and this jump leaves little room to absorb extra costs. Families are also adjusting, with tighter budgets for commuting, school runs, and day-to-day travel.
In the north, agriculture may slow if tractors and equipment stay parked. Tourism, one of Thailand’s key industries, is already showing signs of strain. Fewer road trips, lower bus bookings, and weaker hotel demand could mean quieter streets, smaller crowds, and slower business during Songkran.
There may be a few longer-term changes. Some people hope the higher prices will push drivers to save fuel or use other transport options. Many public transport operators say they are ready, and fares in several areas have not changed yet.
For now, though, the mood is cautious. In Chiang Rai, some residents are putting off non-essential trips. In Chiang Mai, tour guides are worrying about half-empty buses. The impact is spreading quickly.
What Comes Next for Thailand’s Fuel Crisis?
Officials say they are watching oil markets closely. They also promise targeted support and say national fuel reserves are enough to cover Songkran demand. A country-wide shortage is not expected, although local supply problems could continue in northern provinces.
For travelers, planning ahead matters more than usual. Drivers may want to check station apps or call ahead before long trips. Public transport could be a safer option in busy areas, especially if fuel limits remain in place. At the same time, hotels offering flexible pricing may still recover some demand.
Over the longer term, this crisis has exposed Thailand’s heavy dependence on imported fuel. It may also restart debate over energy diversity and the future of the Oil Fuel Fund.
For this year’s Songkran, the holiday will likely look a little different. More people may stay close to home. Trains and flights could become busier where seats are available, and many families will watch their spending more closely. The celebrations will go on, but the mood may be more restrained than usual.
The next few weeks will show how well the government can contain the damage. Clear updates and practical support for affected sectors could help calm public anger.
Thailand has dealt with fuel shocks before. This one came just ahead of the country’s biggest holiday, which makes the pressure even harder to manage. What happens next will shape the story well beyond Songkran.
