Deputy Prime Minister“Ekniti”has ordered the Ministry of Energy to urgently restructure oil prices, aiming to cut transport and insurance fees, and to review the War Premium risk cost to reflect true expenses. The plan is to submit proposals to the Cabinet's first meeting on 6 April 2026, confident this will promptly reduce pump prices and ease the public's living costs.
Mr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, as chair of the Committee for Studying the Appropriateness of Fuel Pricing (CSPF), said after the first CSPF meeting that refinery representatives were invited to clarify data to conclude a pricing structure that reflects reality and fairness for all parties.
Mr. Ekniti assigned the Ministry of Energy to study and adjust the wholesale oil price calculation structure at the refinery level, including "refining fees" and "marketing fees" to reflect actual costs amid Middle East unrest, with the main goal of reducing the public's cost of living and preparing to present to the Cabinet meeting on 6 April 2026.
Reviewing the current oil price formula revealed it may be inflated because transport and insurance costs are included in wholesale prices. The meeting resolved to have the Ministry of Energy revise figures by removing these expenses, which will immediately reduce refining fees.
Additionally, the committee instructed to study the added risk cost on oil price differentials during war periods or War Premium. Although the global market references this risk cost, refineries in Thailand do not rely solely on Middle Eastern oil imports but source from other locations. Thus, real costs must be verified to calculate appropriate refining and marketing fees, preventing excessive burden shifting to consumers.
Refineries are required to submit data by 3 April 2026 for the committee to reconvene and aim to complete the process by 6 April to present at the first Cabinet meeting. It is believed this restructuring will definitely lower pump prices compared to current levels.
Mr. Prasert Sinsukprasert, Permanent Secretary of the Ministry of Energy, clarified that the current average marketing fee (from 1 Jan to 2 Apr 2026) is about 1.95 baht per liter, which remains below the appropriate benchmark of 2.45 baht per liter previously studied. The ministry closely monitors to keep it under this level.
Regarding the recent rise in refining fees to 13-14 baht, this figure actually reflects the price difference between crude oil and refined products, not pure net profit, as it includes raw material costs and war premiums. Compared to a five-year average in normal conditions, refining fees average around 2.45 baht, similar to marketing fees.
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