"To Supachot," MP from the People’s Party, warns that small independent gas stations are dying while the government only supports major oil traders. He questions who is being indirectly rewarded and recommends three steps to disclose information about the entire oil supply chain.
On 13 March 2026, Mr. Supachot Chaisat, a party-list MP from the People’s Party, presented an analysis on oil price volatility amid the ongoing Middle East conflict. The government has introduced measures to cap diesel prices through the Oil Fuel Fund, claiming this aims to reduce the impact on the public’s cost of living.
Mr. Supachot questioned whether these measures truly help consumers in the short term. However, a detailed look at Thailand’s oil market structure reveals concerns that the policy may actually benefit large oil traders, while many small operators face increasing pressure.
He cited reports and feedback from operators in various areas showing that many small, unbranded gas stations are struggling with rising costs. Some have to set pump prices higher than branded stations just to survive, while others face temporary fuel shortages and must periodically suspend services.
These problems are especially severe in remote areas far from major cities and large branded stations, where small stations supply local communities. Transportation and distribution limitations directly affect rural residents, particularly farmers, who rely on fuel for agricultural machinery like irrigation and plowing. Some small stations have run out of fuel and must ration sales, leaving farmers without enough fuel for their work.
Mr. Supachot explained that Thailand’s oil business structure involves large refiners and major oil traders often collaborating or operating under the same brand. They maintain their own networks of stations and typically have long-term supply contracts, ensuring stable prices and fuel availability at their branded outlets compared to small independents.
Currently, the Department of Energy Business reports about 26,000 gas stations nationwide. Approximately 8,500 belong to major oil company brands, while the remaining 17,500 are small independent stations that cannot buy fuel directly from refiners. These independents must purchase fuel through intermediaries known as "jobbers."
Mr. Supachot described the role of jobbers as distributors or middlemen who buy fuel from oil companies or depots and then resell it to independent stations or other users.
Many small operators report that during the current energy crisis, the fuel they buy through jobbers is significantly more expensive than the prices major branded stations receive, forcing small stations to bear higher costs and making it harder for them to compete.
This situation raises a critical question: Is the government’s use of the Oil Fuel Fund to lower fuel prices truly helping everyone in the system, or is it effectively only aiding major oil traders? The fund’s subsidies lower costs mainly for large stations.
Mr. Supachot gave an example: current diesel prices (post-conflict) are 45 baht per liter (as of 12 March 2026). The fund compensates major stations with 15.45 baht per liter (compared to a pre-conflict price of 30.5 baht per liter). Small stations, however, receive no such compensation and must still buy fuel at over 40 baht per liter since they are not part of major brands.
There is also concern that some large oil companies may own jobber subsidiaries. For instance, Company A, a major oil firm, might have Company B as a subsidiary operating as a jobber selling fuel to small or independent stations.
This means Company A could profit by selling fuel via its jobber subsidiary at prices higher than the government-set ceiling. This is possible because no law prevents large companies from owning jobber subsidiaries. Consequently, small stations buy fuel at inflated prices from the start, making it impossible to compete fairly with large company networks. As small stations disappear, market competition weakens.
While the government spends large sums from the Oil Fuel Fund to subsidize fuel prices, this simultaneously benefits major oil companies, raising questions about the fairness of the policy.
Mr. Supachot suggests the government should not only cap pump prices but also disclose full supply chain data—from refiners and major traders to wholesalers, jobbers, and end-service stations—to prove that subsidies are not favoring monopolistic big players.
Therefore, he recommends at least three actions for the government.
1. Reveal comprehensive supply chain information (such as crude oil purchase costs, refining costs, and refinery profits) to verify whether excessive profits are being made during this crisis affecting the whole nation.
2. Investigate the roles of jobbers or middlemen in the market to determine if they are hoarding fuel to artificially raise prices for small gas stations.
3. Implement measures to prevent exploitation of small stations during the energy crisis, such as prohibiting jobbers from selling fuel at prices above government-set caps.
Additionally, Mr. Supachot referred to a recent interview with the Energy Minister, who said plans are underway to enable small stations to buy fuel directly from major traders at government-supported prices, bypassing jobbers. The critical question is how far this process has advanced, since the crisis worsens and many small operators cannot wait any longer.
If this measure is delayed until completion, the crisis for small operators may have already unfolded. During volatile energy prices, small businesses have limited capital and are more vulnerable than large firms, likely leading to closures and disappearance from the market.
Ultimately, this will negatively impact the public, especially rural residents and farmers, who lack nearby large stations and must spend extra time and resources traveling to obtain fuel needed for their livelihoods daily.
In conclusion, Mr. Supachot opines that if this situation continues, Thailand may be left with only a few large company station networks. Reduced competition will facilitate energy monopolies by big capital, increasing profits for them while consumers end up worse off—facing difficulty obtaining fuel and paying higher prices.