Pegging oil prices to Singapore will definitely cause failure, Attawit warns. He points out that the oil fund's subsidies for biofuel blends violate the law, pressing the Ministry of Commerce to quickly control prices. Allowing prices to float freely will push product prices higher. He asks whether the Energy Minister is cutting oil prices based on moods.
At 13:20 on 24 Sep 2026 GMT+7. Mr. Attawit Suwanpakdee, party-list Member of Parliament for the United Thai Nation Party (UTN). He stated at the parliament about the soaring energy prices: Today, diesel sells in Thailand at 41.44 baht per liter, the highest in 18 years. If this continues while the Ministry of Energy still references the hypothetical refinery price in Singapore as the selling price, it will be disastrous.
Attawit added that in the past, referencing Singapore prices was acceptable because it was a market price. But now, the prices deviate from market mechanisms and fluctuate widely, making Singapore prices unsuitable as a reference. For example, in 2022 when Dubai crude was $112 per barrel, diesel in Thailand was 35 baht per liter. Today, with Dubai crude still at $112 per barrel, Thai diesel has jumped to 41.44 baht per liter, an increase of more than 6 baht per liter.
He further explained that this is a distortion caused by referencing Singapore refinery prices. Singapore is an export market and maintains high export prices while subsidizing its domestic consumers. Thailand mainly consumes domestically and exports less. Instead of regulating properly and stopping the Singapore reference, the Ministry of Energy refuses to do so, partly because Donald Trump remained US president for two more years, causing market disruptions whenever prices swung upward.
If the government continues to peg to Singapore prices, funds will definitely be insufficient. Proposals to reduce excise tax on oil do not address the core problem and will cause budget revenue for 2027 to fall short, affecting government expenditures. Currently, the oil fund deficit is as high as 92 billion baht and will reach 100 billion baht next week. No amount of government injections will suffice. The solution is to abandon the Singapore price reference; otherwise, Thailand will collapse.
"Another important issue is that on 24 Sep 2026, the Oil Fund Act of 2019 expires, which allows using the oil fund to subsidize. However, Section 55 prohibits using the fund to subsidize fuels blended with biofuels such as E7 or B20. Yet, the Cabinet on 22 Sep recently resolved to use the oil fund to subsidize biofuel blends, which is illegal. I warn the Energy Minister that this will cause problems for palm oil prices, which are still high today. If not corrected quickly, the government and Cabinet will be violating the law by using the oil fund improperly. Managing energy policy this way will ruin fiscal policy and the overall Thai economy," he said.
Presses Ministry of Commerce to urgently control oil prices; leaving prices to float will raise product costs.
Regarding urgent short-term solutions, Attawit said it is the Ministry of Commerce's duty to set controlled prices for goods, including fuel, but the ministry has never done so. Therefore, the Ministry of Commerce must submit a proposal to the Cabinet to amend Cabinet resolutions and clearly announce maximum price ceilings for each type of fuel, similar to setting price ceilings on instant noodles and cooking oil. The maximum price level should be proposed by the Energy Policy and Planning Office of the Ministry of Energy, which must send figures to the Ministry of Commerce for announcement and Cabinet approval.
Once maximum oil prices are controlled, other product prices can also be controlled. But today, the Ministry of Energy lets fuel prices float freely with no ceiling and still references Singapore prices. Diesel prices in Thailand have surged abnormally, deviating from market mechanisms with wide fluctuations. If this continues, rising fuel prices will push up prices of consumer goods accordingly.
Questions the Energy Minister: Are oil prices cut arbitrarily based on moods?
When asked if the Ministries of Commerce and Energy coordinate their work, Attawit expressed deep disappointment. The Ministry of Commerce must coordinate with the Ministry of Energy. Previously, the Ministry of Energy was under the Ministry of Commerce, but since splitting in 2002, the authority to regulate fuel prices as controlled goods remains with the Ministry of Commerce. However, the Ministry of Commerce lacks oil price data if the Energy Policy and Planning Office does not provide it.
Attawit said the Energy Minister's weekly or monthly crude margin cuts are not proper policy because this means fuel prices depend on the minister's discretion. Price speculation persists, and negotiations determine when to cut margins. If the minister wants to cut this week, they do; if not, they don't. He also questioned the minister's absence this week.