Fuel Prices Surge in Thailand as Government Cuts Subsidies

Fuel prices across Thailand jumped sharply on March 26 after the Oil Fuel Fund (OFFO) reduced subsidies, pushing retail costs up by 6 baht per liter.

The updated subsidy rates were announced late on March 25. On the same day, Finance Minister Ekniti Nitithanprapas stated that the government would no longer impose price caps on fuel, allowing prices to fluctuate according to market forces.

Although official pricing tables initially remained unchanged overnight, they were updated the following morning to reflect the increase across all fuel types — including those not previously subsidized.

Updated fuel pricing structure

According to revised data, the price adjustments affected both consumers and subsidy contributions:

• Diesel B7: 38.94 + 19.12 = 58.06 baht

• Gasohol 95: 41.05 + 3.26 = 44.31 baht

• Gasohol 91: 40.68 + 3.26 = 43.94 baht

• Gasohol E20: 36.05 + 5.94 = 41.99 baht

In the case of E85 fuel, subsidies have been completely removed. Instead of receiving support, consumers now contribute 2.29 baht per liter to the OFFO.

Policy shift toward market pricing

The move signals a broader policy shift, with authorities stepping back from direct price control and allowing fuel costs to reflect global market conditions.

Following the price hike, Prime Minister Anutin Charnvirakul reportedly called an urgent meeting to review energy policy, adjusting the agenda of a previously scheduled government session.

Local media also noted that the prime minister has been arriving at Government House in an electric vehicle for the second consecutive day, underscoring the growing focus on alternative energy solutions.