The Oil Fund carries a debt exceeding 50 billion baht, making it necessary to reduce diesel subsidies, resulting in the retail price of diesel B7 rising to 50.54 baht per liter.
On 4 Apr 2026 GMT+7, the Oil Fuel Fund Management Committee resolved to cut the oil fund subsidy for diesel B7 by 2.61 baht per liter, from 20.71 to 18.10 baht per liter, and reduce the subsidy for diesel B20 by the same amount, from 22.22 to 19.61 baht per liter, aiming to lower daily outflows from 1,708.75 million baht to 1,496.72 million baht.
Consequently, the retail price of diesel B7 increased by 2.80 baht per liter, from 47.74 to 50.54 baht per liter, while diesel B20 rose by 2.80 baht per liter, from 42.75 to 45.54 baht per liter, aligning prices with market conditions and maintaining the fund's liquidity security, effective from 5 April 2026 GMT+7 onward.
The primary reason for the subsidy cut is the ongoing crisis-level volatility in global oil prices. Reducing subsidies and allowing retail prices to reflect true costs more closely is essential to restoring balance to the Oil Fund in the long term. This reduction cuts daily fund expenses by approximately 212.03 million baht, lowering daily expenditures from about 1,708.75 million baht to 1,496.72 million baht.