On days when "oil prices" keep surging, the greater concern than rising costs is that "even with money, you can't find fuel to fill up." Some gas stations see queues stretching for kilometers, others display signs saying "temporarily out of fuel," and at some, customers can only purchase a few hundred baht worth of fuel per vehicle. The question arises: Is there truly a fuel shortage, or is the "fuel not reaching us"?
Although many link this to tensions in the Middle East impacting global oil prices directly, the government insists that "Thailand's oil reserves remain sufficient for over 100 days." The more one listens, the more contradictory it seems. So, what exactly is causing this problem?
This article invites readers to peel back the layers of the actual situation and trace the journey of 1 liter of oil from its origin at the refinery to the dispenser at the gas station, seeking to identify who and what determines whether you can refuel today.
Before understanding the oil's path, one must recognize that Thailand's "energy wallet" is currently in crisis.
Regarding crude oil's journey from refinery to consumer, according to major operator PTT's disclosures, oil does not flow directly from refinery through pipelines to our vehicles. Instead, it is managed by legally authorized "oil traders," divided into two main groups as follows.
1. The major players under "Section 7" (Large-scale oil traders)
These are the prominent brands clearly visible nationwide, classified as Section 7 traders (with annual trade volumes of 100,000 metric tons or more), including...
Their role is to receive oil directly from refineries and supply their own branded service stations. They have strengths in transport networks and oil storage facilities, maintaining relatively stable systems. However, if many customers fill up simultaneously, delivery trucks may not keep up.
Besides those owning their own stations, some Section 7 traders focus on refining and wholesale large lots to intermediaries or industrial factories, such as:
These major players are legally required to keep oil reserves (e.g., crude oil reserves of 1.5–3% per government policy) to ensure that Thailand has fuel during war or global crises.
2. Intermediaries under "Section 10" (Jobbers / Wholesalers)
This is a critical yet lesser-known cog in the economy: Section 10 oil traders.
They act as intermediaries or middlemen, purchasing large oil lots from Section 7 traders or refineries and distributing them to
However, Section 10 groups are vulnerable, often having shorter financial capacity. During periods of high oil prices or price fluctuations, they may reduce stock or face difficulties sourcing fuel, resulting in independent community stations ("tube stations") running out of fuel first. They also bear high risk; for example, if they stock 100,000 liters today and the government immediately cuts prices tomorrow, they incur heavy losses on inventory.
This "shortage" phenomenon originates here, because when oil prices fluctuate sharply or prices start to float freely, some intermediaries "stop running trucks" due to unprofitability or fear of losses.
Consequently, village tube stations run dry, tractors lack fuel, factories halt machinery, and people flock to major branded stations, causing long lines.
The answer is not that "domestic oil is depleted" but rather due to "logistical bottlenecks" and "allocation." When demand suddenly spikes, delivery trucks that used to run 1–2 trips daily may need to run 4–5 trips, which is practically impossible given legal driving hour restrictions and distances from storage depots.
In some cases, oil is present in storage but insufficient on delivery trucks, and underground tanks at stations are empty. Smaller stations relying on Section 10 traders suffer when intermediaries cannot supply quickly or choose not to transport fuel, turning those stations into "ghost stations" temporarily, while major branded stations (Section 7) can sustain supply longer.
Business owners of some gas stations reveal that the root cause of shortages is quota restrictions. For example, when previously customers could fill up for 1,000 baht, the storage depot limited the quota to the station, forcing it to restrict sales to 500 baht per vehicle to serve more customers. They prefer not to do this, as each pump activation consumes significant electricity.
Understanding the oil supply chain helps us see that "energy security" means not just having ample crude oil reserves but also a robust distribution system. As prices align more with market mechanisms amid shortages, our best response is to plan energy use efficiently and recognize that the scenes at gas stations are just the visible end of a complex underlying system.
Sources: PTT, Ministry of Energy
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