BANGKOK – Prime Minister Anutin Charnvirakul publicly apologized after Thailand’s fuel policy confused, long lines, and sharp price jumps. His remarks came after the government removed strict fuel price caps, a move that pushed pump prices up by six baht per liter and caught many drivers off guard.
The policy shift is meant to address bigger problems that have spread across the country. These include fuel smuggling to nearby countries and supply shortages, even in northern provinces such as Chiang Rai and Chiang Mai. During a Saturday press conference at Government House, Mr. Anutin admitted that the government’s early effort to protect people from rising world oil prices had led to serious problems at home.
Why Thailand Scrapped Fuel Price Caps
For months, the state Oil Fuel Fund had kept fuel prices lower through heavy subsidies. That support helped families and businesses for a time. However, rising tensions in the Middle East drove global oil prices higher, and the fund began losing huge sums, reaching billions of baht per day during some stretches.
Mr. Anutin said the government first believed the spike in oil prices would pass quickly. Instead, the pressure lasted much longer. As a result, the subsidies became too costly to maintain. He said ending strict price caps should reduce cross-border smuggling and discourage stockpiling.
According to the Prime Minister, lifting price controls at the pump should help stop fuel from being smuggled into neighboring countries and ease domestic shortages. Cheap Thai fuel had created an opening for traders to buy locally and sell elsewhere for profit, which made supply problems worse inside Thailand.
At the same time, officials said the country is not moving to a fully free pricing system. Some targeted support will remain in place, so local fuel prices can still stay below levels seen in several nearby markets.
Panic Buying Followed the Price Hike
Drivers felt the change right away. The new fuel prices took effect at 5 a.m. on Thursday, and the late notice from the Oil Fuel Fund Office led to immediate panic buying.
Across the country, drivers rushed to fill their tanks before prices rose. That scramble created long lines at gas stations in Bangkok and other major cities. Some stations limited how much people could buy, while others temporarily ran out because demand surged so quickly.
The six-baht increase hit many households hard. Diesel, which many trucks, buses, and farms rely on, jumped by about 18% in some categories. Gasoline and gasohol prices also moved up sharply. For families and small business owners already dealing with higher living costs, the increase felt sudden and painful.
Later, the Oil Fuel Fund Office said the large increase reflected rising benchmark prices in Singapore and the fund’s deep financial losses. Still, many critics focused on the poor communication. Mr. Anutin did not comment publicly until Saturday, when he finally addressed the backlash and offered an apology.
Northern Provinces Faced Severe Fuel Shortages
Higher prices were only part of the problem. In several areas, especially in northern Thailand, fuel shortages became just as serious.
In Chiang Rai, many residents said gas stations either shut down early or rationed fuel. One motorcycle delivery worker said he had to wait nearly an hour each day just to fill up, which cut into income that was already falling. As orders slowed and daily costs kept rising, many local families felt more strain. Some reports said 80 to 90 cars, along with dozens of motorbikes, lined up at certain stations, while workers used loudspeakers to control the crowds.
Chiang Mai saw many of the same scenes. Several stations on major roads ran out of diesel only hours after opening. Some began selling only motorcycles, while others stopped serving cars altogether. Local transport operators warned that the shortages could hurt tourism and business activity because buses and tour vans could not count on a stable fuel supply.
These problems showed how low-price subsidies, panic buying, and hoarding all fed into the same crisis. In some places, people stored extra fuel for resale or for industrial use. Smuggling across the border also added pressure where supply was already tight.
Public Anger Grew as Officials Tried to Respond
The sudden jump in fuel prices triggered strong criticism online and in everyday conversations across Thailand. Many people said the government should have given the public more warning and handled the transition better.
Mr. Anutin faced that anger directly. He said that during the first half of March in particular, the government’s fuel price management had caused turmoil, and he apologized to the public. He also bowed in a traditional wai gesture in front of reporters.
He said the government still wants to protect the public while keeping the fuel system financially stable over the long term. At the same time, officials have increased efforts to stop hoarding and illegal smuggling. Provincial authorities and border forces have been told to tighten checks and watch fuel movement more closely.
The government has also promised support for vulnerable groups, although full details have not yet been announced. Mr. Anutin said prices will not be left to rise without limits, and he stressed that the fund will still help soften future price swings.
For drivers in Chiang Rai, Chiang Mai, Bangkok, and elsewhere, the next few weeks may remain difficult. Higher fuel costs could push up bus fares, food prices, shipping costs, and delivery fees. Small businesses, farmers, and transport workers who depend on diesel are likely to feel the pressure first.
Still, supporters of the change say the old system could not continue. Artificially low prices encouraged waste, smuggling, and empty pumps. Those problems became clear in recent days as shortages spread and lines grew longer.
By stepping away from strict price caps, the government hopes legal domestic sales will become more attractive than smuggling fuel out of the country. Lower hoarding may also help supply recovery and make fuel easier to find.
Officials have asked the public to stay calm and said future changes will be communicated more clearly. With Songkran coming soon, they are hoping supplies stabilize so families can travel without worrying about finding fuel.
Looking Ahead as Thailand Tries to Restore Stability
The episode highlights how hard it is to manage energy policy when global oil markets are unstable. Thailand, like many countries, is feeling the effects of conflict in the Middle East through higher oil prices and tighter supply.
Mr. Anutin’s apology appears to be an effort to regain public trust. Still, public opinion will likely depend on what happens next, especially how quickly shortages ease and whether promised aid reaches the people who need it most.
For now, many Thais are adjusting as best they can. Some are driving less, sharing rides, or turning to more fuel-efficient vehicles when possible. Others are keeping a close eye on world oil prices, knowing local pump costs still depend on events far outside Thailand.
The end of strict fuel caps marks a practical shift in policy. The government hopes it will protect the Oil Fuel Fund, curb smuggling, and keep fuel inside the country instead of losing it to illegal trade or hidden stockpiles.
As one Bangkok driver said after waiting in line, people understand that the global situation is difficult, but they still want clear updates and support from the government.
Mr. Anutin’s message was plain; the old approach created more trouble than relief. The new one may hurt in the short term, but the government believes it offers a better path toward stable supply and fairer fuel pricing.
