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Democrat Party Proposes Two Measures to Address Oil Price Issues, Urges Fair Government Management Amid Crisis

Politic17 Mar 2026 17:00 GMT+7

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Democrat Party Proposes Two Measures to Address Oil Price Issues, Urges Fair Government Management Amid Crisis

The Democrat Party recommends an immediate excise tax reduction of 6 baht per liter and a 3 baht per liter windfall tax on refineries. It presents five key points of the oil crisis and urges the government to manage fairly, emphasizing transparency as the way to safeguard people's livelihoods.


At 16:12 on 17 Mar 2026 GMT+7. Mr. Korn Chatikavanij, Deputy Leader of the Democrat Party, posted a message onFacebookstating that the Democrat Party has proposals to help resolve the diesel price issue for the government and refineries, emphasizing that the public should not bear the burden alone.  

Therefore, all parties should participate to reduce the burden on citizens and the private sector under the current circumstances, as follows.

1. The government should immediately cut the excise tax by 6 baht per liter.

2. Impose a windfall tax of 3 baht per liter on refineries to support the Oil Fuel Fund.

These two proposals would have immediate effects,

  • reducing Oil Fund subsidies by up to 9 baht.
  • This would save the Oil Fund 600 million baht daily, cutting its expenses by more than half.

“This measure will enable the Oil Fund to continuously stabilize prices through the Songkran festival, a period of high energy demand. What the public needs during a crisis is systematic planning, transparent communication, and fair management for all parties,”

Mr. Korn added that the Democrat Party’s proposal arises from the widespread impact of the current energy situation. It aims to build understanding and suggest ways to help people sustainably overcome this cost-of-living crisis by identifying five key energy issues the government urgently needs to address. These include:

1. Fairness in pricing—who benefits and who suffers. He pointed out that while the public bears the burden of rising fuel prices—both at the pump and indirectly through the Oil Fund debt to be repaid in the future—refineries still earn very high profit margins compared to costs. Meanwhile, the government continues to collect full taxes at the existing rates, raising questions about balance and fairness in sharing the burden.

2. Crisis of access when fuel is scarce at gas stations. The “fuel shortage at pumps” problem is not only due to insufficient reserves but also distorted pricing structures. When industrial wholesale prices exceed retail pump prices, businesses buy fuel at gas stations instead. Combined with reduced deliveries from storage facilities, this causes public panic and loss of confidence in the government’s ability to control the situation.

“Currently, there is a shortage of fuel at gas stations while the government signals sufficient stocks but poor management. Diesel prices have two levels: industrial wholesale and pump retail. The wholesale price is much higher because it receives no compensation from the Oil Fund, causing industries to buy at pumps instead, leading to shortages. At the same time, gas stations report receiving less fuel from depots than usual, and public panic worsens the situation. The panic is due to genuine shortages and a belief that the government cannot manage prices effectively.”

3. Chain reaction impacts with people's livelihoods at the core. The fuel crisis extends beyond gas stations, affecting farmers’ production costs, especially fertilizer shortages, and causing general consumer goods prices to rise, directly impacting household incomes.

4. Weakening economic engines. Key sectors like tourism and exports, vital to Thailand’s economy, suffer from soaring transport costs. Fishermen also struggle with rising “green diesel” prices, nearly unbearable. These issues require comprehensive and timely support.

5. Long-term energy security. Mr. Korn stressed the importance of securing energy sources, particularly LNG for power generation, which is fundamental to national security. The government must have clearer and more efficient plans than currently in place.

“What people need during a crisis are systematic planning, transparent communication, and fair management for all parties.”

Mr. Korn added that the government must listen to feedback from all sectors to improve its work, as genuine understanding and cooperation are essential for Thailand to overcome these challenges with stability and sustainability.