The Energy Business Department explained that the recent surge in refining margins is a normal mechanism, resulting from the price difference between crude oil and refined products, which is an international market index and does not affect the fuel prices consumers pay.
On 13 March 2026, Sarawut Kaewtatip, Director-General of the Energy Business Department, revealed that today the Center for Management and Monitoring of the Middle East Conflict Situation (CMMS) held discussions with domestic oil refinery operators regarding concerns over oil price fluctuations and refinery margins. He stated that initial investigations by the Ministry of Energy confirmed no abnormalities in the recent rise in refining margins. This increase is not set by refineries or the government but is the result of international market mechanisms calculated from the difference between two main components: the prices of refined products like gasoline, diesel, and LPG based on regional market prices or the Singapore MOPS, minus the crude oil cost determined by futures trading mechanisms.
Sarawut further clarified that the refining margins reported by the Energy Policy and Planning Office (EPPO) reflect actual market conditions, which can be both positive and negative at times.
"These refining margins do not always represent the true profits of refineries, because if a refinery is inefficient, it may suffer losses even when margins are high."
Additionally, if crude oil is purchased at a high price but global refined product prices fall after refining, refineries must bear the risk of losses as well. When asked about the impact of high refining margins on the public, Sarawut emphasized that refining margins are merely an index showing the daily difference between crude oil and refined product prices and do not directly affect the prices consumers pay at the pump.
Retail prices at service stations are based on refinery gate prices, which are the prices of finished products plus taxes and various funds under free market mechanisms. At times such as during conflicts, refined product prices may spike sharply due to market panic, even if crude oil costs have not increased.
Regarding next week's fuel price adjustments, the government has tasked the Ministry of Energy, together with the National Economic and Social Development Council (NESDC), to closely monitor the situation and develop scenarios to find ways to assist the public and present these to the CMMS.
Furthermore, the Director-General of the Energy Business Department mentioned progress on importing oil from Russia. Following directives for the Ministry of Energy to explore alternatives, studies show that technically, Thai refineries can process Russian crude. The next step involves coordination with refinery groups and traders to consider procurement details, initially based on Brent crude prices, aiming to provide an alternative option for managing the country's energy costs and sourcing replacement oil from the Middle East, where current transportation and production face limitations.