BANGKOK – The Government of Prime Minister Anutin Charnvirakul is facing another round of criticism as fuel prices rise sharply and Thailand’s Oil Fuel Fund falls further into debt. The jump in costs has put more pressure on households, drivers, and small businesses, especially with the Songkran holiday coming soon. While the government says it stepped in to avoid a bigger crisis, many people across the country are already feeling the strain.
Fuel costs in Thailand are rising because global oil prices have spiked. Ongoing fighting in the Middle East has shaken energy markets, pushing Dubai crude above US$120 per barrel on March 27.
That marks an increase of about 72% from before the conflict intensified. At some points, prices even shot past US$200 and came close to US$240 per barrel.
Because Thailand depends heavily on imported fuel, those global swings quickly raised local costs. For a while, the government tried to hold prices down with subsidies. However, that support drained the Oil Fuel Fund at a rapid pace.
At one stage, the fund was paying out about 2 billion baht a day. It now carries a deficit of more than 42 billion baht. Officials say keeping the old price caps in place would have pushed the fund even deeper into trouble.
Then, on March 26, retail fuel prices rose by roughly 6 baht per liter overnight. That sudden increase caught many people off guard. As a result, long lines formed at gas stations as drivers rushed to fill their tanks before the higher prices took full effect.
Current Retail Fuel Prices in Thailand
After the latest adjustment, fuel prices in Thailand stand at the following levels:
- Retail diesel (high-speed diesel B7/B20), 38.94 baht per liter
- Gasohol 95, 41.05 baht per liter
- Gasohol 91, about 40.68 baht per liter
- Gasohol E20, around 36.05 baht per liter
Even with the increase, the government says pump prices in Thailand are still lower than in several other ASEAN countries. In its view, that shows some support remains in place. Still, higher costs are hitting truck drivers, farmers, delivery workers, and daily commuters, especially those who rely on diesel.
Anutin Apologizes and Defends the Policy Change
Prime Minister Anutin Charnvirakul addressed the issue publicly on March 28. During a televised statement, he apologized for the sudden price swings and said the government had expected the Middle East conflict to ease faster than it did. He admitted that officials got the timeline wrong.
He also said lifting the strict fuel cap would help reduce smuggling and prevent cross-border price abuse. At the same time, the move is meant to slow the losses in the Oil Fuel Fund, so the state can still provide targeted subsidies where needed. According to Anutin, Thailand has not fully let fuel prices float. Some support remains, and the government says it wants to keep Thai fuel cheaper than in many nearby countries.
Still, the pressure on Anutin is growing. As leader of the Bhumjaithai Party, and a politician with experience in business, public health, and the interior ministry, he is now facing fresh criticism from opposition figures who say his government mishandled the economic fallout. Fuel prices have become a repeated problem for his administration, and this latest spike has brought the issue back into public view.
Songkran Travel Concerns Add More Pressure
With Songkran, the Thai New Year holiday, just weeks away, many people are worried about whether fuel prices will stay under control during one of the country’s busiest travel periods. The large deficit in the Oil Fuel Fund makes a new price cap far from certain. Because of that, authorities have told governors in all 77 provinces to get ready and make plans to avoid local shortages.
Anutin has tried to calm those concerns. He says Thailand has enough fuel for the holiday period and that supply should remain stable. He also urged the public to use public transportation, share rides, and report any signs of hoarding or stockpiling.
Even so, some travel operators say advance bus bookings are weaker than normal. Many families appear to be cutting back because of higher transport costs. Tourism groups still hope Songkran will generate about 30 billion baht in revenue, but rising fuel prices may reduce travel and spending.
Steps the government says it is taking for Songkran
- Monitoring fuel supply in each region every day
- Telling provinces to manage local demand closely
- Asking people to consider options other than private cars
- Taking action against illegal hoarding and profiteering
Because of these higher costs, some people are rethinking long-distance trips home. Others are planning shorter visits, while some may delay travel altogether.
The Wider Impact on Families and Businesses
Rising fuel prices don’t stop at the pump. They push up transport costs, food prices, and overall inflation. As a result, households feel the pressure in many parts of daily life. Small business owners are also under strain, especially those that depend on delivery vehicles or diesel-powered equipment. Farmers face similar worries, since many rely on fuel for transport and farm operations.
In response, the cabinet has introduced several relief steps, including adjusted subsidies and public calls for energy-saving habits. Anutin has also pointed to diplomatic efforts meant to protect fuel supplies and keep imports stable. At the same time, he says the government is still focused on energy security and the cost of living.
Energy analysts warn that if global oil prices stay high for too long, Thailand could face even tighter fiscal limits. The Oil Fuel Fund has gone through both surpluses and deficits over the years, largely because of policies designed to soften price shocks. This time, though, the speed of the losses has raised fresh alarm.
Anutin insists Thailand is not facing a full energy emergency. He has rejected claims that diesel could soon hit 60 baht per liter, calling that talk speculative. According to the government, supply conditions are improving, and officials are watching the market closely.
Still, criticism has not eased. Opposition parties and consumer groups continue to question the sudden jump in fuel prices and whether the government did enough to prepare for the global shock. With daily travel costs rising and Songkran near, public confidence has become a major issue.
For now, the government says it will keep adjusting policy to balance public relief with financial limits. Drivers, meanwhile, are paying more and hoping global oil prices settle down soon.
The crisis has also shown how exposed Thailand is to events far beyond its borders. Conflict in the Middle East is now shaping prices on Thai roads, affecting holiday travel, business costs, and household budgets at the same time.
Over the next few weeks, many people will be watching closely for simple answers, whether prices can stay manageable, and whether enough fuel will be available during the Songkran rush.
