Attawit Suwanpakdee urges the prompt use of the 1973 Oil Shortage Act to stabilize prices instead of pushing the burden onto the oil fund, stressing uncertainty over how long the Hormuz Strait will remain closed.
At 11:00 a.m. on 18 March 2026 at the Parliament, Attawit Suwanpakdee, party-list MP and deputy leader of the Ruam Thai Sang Chart Party, discussed oil fund oversight. He recalled that when Peerapun Salirutvikorn was Energy Minister, an announcement required refineries to report actual production costs. This allowed the oil fund, which uses public money, to compensate based on real costs, not assumed costs or profits. Compensation should cover losses, not profits. Currently, Thai oil prices are based on assumed costs, using Dubai crude and refined oil prices from Singapore, creating a fictitious refining margin. During crises, this margin rises contrary to unchanged costs, causing windfall profits. While other countries tax such profits, Thailand does not, allowing refineries undue gains. Compensation should match losses, not profits. If the oil fund compensates based on assumed prices, funds will be insufficient, especially with the uncertain duration of the Hormuz Strait closure. Therefore, auditing the oil fund will enhance its proper functioning.
"We are not managing the country under normal oil price fluctuations but facing a crisis. Every baht must be used efficiently. I have publicly raised these issues and am unsure what more to say to the current Energy Minister, as I have already presented all points. I hope the new Energy Minister or government will continue with these proposals," he said. Attawit said.
Not normal fluctuations.
When asked about the Energy Minister's handling of the energy situation, Attawit said he believes the minister has misjudged the timing in briefing the Prime Minister, as the current situation is not a normal oil fluctuation. The Hormuz Strait closure has been threatened for a long time, even when they were in the Energy Ministry. Back then, they managed by using the oil fund to cushion price spikes during short shortages. Now, with the strait closed for two weeks and oil shipments arriving in about a month, there will be an oil shortage in the next month. Currently, crude oil supplies are sufficient, so oil shortages should not occur.
Reveals cause of diesel shortage.
"Currently, gas stations, especially diesel, face shortages. I describe this as a two-tier diesel system: retail prices and wholesale prices, with wholesale prices higher. Refineries sell to middlemen at higher prices, causing shortages at stations. Stations owned directly by PTT do not face shortages due to consistent quotas, but PTT, Bangchak, and some private firms reduce quotas, including small private stations. Selling diesel at 30 baht per liter to consumers is less profitable than selling to industry at higher prices. This management leads to shortages. I propose using the 1973 Oil Shortage Act because the government currently only uses half of it by banning exports. The law should be fully used to cap oil prices without the oil fund covering price differences since current costs stem from imports 2-3 months ago. New oil shipments can then have their true costs subsidized from the fund. I question why the Energy Ministry manages oil as if under normal price fluctuations rather than a shortage crisis," Attawit remarked. Attawit noted his concerns.