THAILAND DROPS DIESEL PRICE CONTROLS AS ENERGY CRISIS DEEPENS

By Kenny Teng

BANGKOK, March 24 (Bernama) -- The Thai government can no longer sustain diesel price controls amid a prolonged global energy crisis, according to Deputy Prime Minister Ekkanit Nitithanprapas.

Ekkanit, who is also the Finance Minister, said the government would have to allow diesel prices to follow market mechanisms, warning that continued price caps could lead to fuel hoarding and shortages.

He said the government would instead focus on targeted relief measures.

“If we continue to fix prices, hoarding will inevitably occur. Therefore, we must allow prices to follow market mechanisms, while managing the impact on vulnerable groups, as well as the transport and agricultural sectors,” he said during a live programme “Interview on Channel 3” on Tuesday.

Ekkanit added that while the government cannot go against market forces, it will utilise the Oil Fuel Fund to prevent prices from rising too rapidly.

“We cannot fight the market – if we try, we will lose. Gradual price adjustments are also ineffective. In a severe energy crisis like this, all sectors must adapt. We will seek to ease the impact on the public, especially those most affected, but fuel prices must ultimately reflect market conditions, with measures in place to mitigate excessive impact,” he said.

He noted that the government must respond swiftly to changing conditions, pointing out that even oil-producing countries have adjusted their policies.

When asked whether diesel prices could exceed 33 baht per litre, he said this was inevitable under global market conditions.

“Of course. That is how the global market works. How can we fix prices? We must allow them to move accordingly. At the same time, we must manage fuel use in the agricultural sector, including adjusting from B10 to B20,” he said.

Domestic fuel prices increased effective 5 am on March 24 petrol rising by two baht per litre and diesel by 1.80 baht per litre. (100 baht = RM12.15).

A check at a PTT service station showed that petrol Gasohol 95 was priced at 35.05 baht (RM4.26) per litre and Gasohol 91 at 34.68 baht (RM4.21) per litre, while Diesel B7 stood at 32.94 baht (RM4.00) per litre.

-- BERNAMA