The Energy Minister signed an order to cut phantom costs by 30 million baht daily, enabling reductions in all oil price categories starting tomorrow (29 Oct), especially B7 diesel, which affects transportation sector costs, allowing an immediate price drop of about 1 baht per liter.
28 October 2026 GMT+7 Mr. Eknat Phromphan, Minister of Energy, held a press conference on the oil price situation and the restructuring of crude oil costs. He confirmed that referencing global oil prices based on the Singapore market during crises to adjust domestic prices is unfair to oil consumers. Currently, Thailand imports up to 90% of its crude oil, but it actually has refineries capable of producing sufficient oil for domestic use. Therefore, from now on, Thailand will no longer use global market prices as a benchmark for domestic oil pricing.
An examination of crude oil production cost structure revealed that since 2004, four phantom cost components have been included: transportation, insurance, losses, and oil reserves, totaling over 10 billion baht annually. These are costs that do not occur daily but have been included every day, constituting phantom costs. Since 2004, these phantom costs have caused oil prices to rise by up to 230 billion baht, resulting in higher prices and unfairness to consumers.
The Ministry of Energy has reviewed the oil price structure and costs since April and brought the matter to the Energy Policy Administration Committee (EPAC). All oil distributors were called for briefings and informed of the necessity to cut phantom costs and completely restructure oil prices. All distributors acknowledged and are ready to comply. Subsequently, an order was drafted to reduce phantom costs and submitted to the Council of State for legal interpretation to ensure compliance with the law.
Regarding today's press conference, Mr. Eknat signed the order effective from tomorrow (29 October 2026), marking the first time in Thailand that all four phantom cost components will be removed from oil prices, saving about 30 million baht daily. This will allow oil prices to decrease across all types from tomorrow, particularly B7 diesel, which impacts transportation costs, with an immediate reduction of approximately 1 baht per liter. For other oil types, the Fuel Oil Fund will consider how much of the saved funds can be used to reduce prices, depending on the oil price situation. The savings will also be used to support oil prices during future crises.
