The Fuel Fund Committee announced the necessity to raise diesel prices to 33 baht per liter to ease the burden on the oil fund after an unprecedented surge in global market prices.
On 24 March 2026, reporters reported that yesterday (23 March 2026), Pornchai Jirakulpaisan, Director of the Policy and Planning Office at the Oil Fuel Fund Office, revealed that the Fuel Fund Committee approved reducing diesel price compensation rates. As a result, the retail diesel price from tomorrow (24 March 2026) will be set at 33 baht per liter. This price adjustment is due to tensions in the Middle East, especially following the Iranian attack incident, which caused diesel prices in the Singapore market to spike sharply—from 92 US dollars per barrel to 223 US dollars per barrel, an increase of over 131 US dollars. This rise translates to an increased cost of 26 baht per liter, forcing the Oil Fuel Fund to bear compensation costs of nearly 2.4 billion baht daily, or about 70 billion baht monthly. Therefore, an urgent adjustment is necessary to reduce the burden and maintain the fund’s liquidity to stabilize prices in the long term.
Besides cost factors, the price increase also aims to balance regional prices, as neighboring countries like Malaysia have raised diesel prices from 32.40 baht per liter (on 16 March) to 38.70 baht per liter. Keeping prices too low domestically would incentivize fuel smuggling and hoarding for speculation. This price adjustment will help mitigate such issues and prevent the country’s resources from leaking to unscrupulous profiteers.
“Following today’s Fuel Fund Committee meeting, it was decided that raising diesel prices to the ceiling of 33 baht per liter is necessary to manage the liquidity of the Oil Fuel Fund, enabling it to continue supporting prices amid volatile global market conditions. Importantly, this step reduces the price gap with neighboring countries and prevents fuel smuggling. Currently, all surrounding countries have diesel prices above 33 baht per liter. If we do not adjust now, the fund’s burden will become too heavy, potentially affecting future energy security. We ask for public understanding of this situation. The Ministry of Energy will work diligently and coordinate with relevant agencies to implement measures that minimize the impact on the public,” said Pornchai.