Bangkok: Energy Minister Attapol Rerkpiboon has announced measures to manage diesel prices, leveraging the Oil Fund to maintain prices below 30 baht per liter amidst rising global oil costs.
According to Thai News Agency, the Energy Ministry, led by Minister Attapol, is actively monitoring the global oil price fluctuations, largely driven by geopolitical tensions such as the US-Iran conflict. Since the start of 2026, crude oil prices have increased by US$10 per barrel, affecting benchmark prices in Thailand and Singapore. Despite these hikes, the Ministry has utilized the Fuel Fund to stabilize domestic oil prices, notably reducing the diesel levy by 2 baht per liter to just 20 satang per liter. This strategy aims to shield the public from rising living costs while maintaining the fund's positive liquidity, which has stood at over one billion baht since January 28, 2026.
Minister Attapol emphasized the Ministry's commitment to using the Oil Fund as a buffer to maintain price stability, ensuring diesel prices remain at approximately 30 baht per liter. Additionally, household cooking gas prices are frozen at 423 baht per 15 kg cylinder until the end of March. The Minister also called for public cooperation in conserving fuel amid these measures.
The Energy Minister highlighted the Ministry's efforts since his tenure began in October 2025 to lower diesel and gasoline prices, supported by the improved financial health of the Oil Fund. As of February 5, 2026, the fund's positive balance stands at around 1 billion baht, a significant improvement from the 14,754 million baht deficit recorded in October 2025.
The Fuel Fund Office reported the fund's status as of February 1, 2026, detailing total assets of 62,048 million baht against liabilities of 33,489 million baht, resulting in a net balance of 505 million baht. The fund's deficit, which began on December 12, 2021, reached a peak of 132,671 million baht on November 27, 2022, due to subsidies during the early stages of the Russia-Ukraine conflict.
Currently, the fund's cash flow is approximately 27 billion baht, with a positive oil account balance of 39,046 million baht. This includes collections from diesel and various gasoline products. However, the LPG account remains negative at 38,541 million baht due to ongoing subsidies.
As the Oil Fund reviews its fuel crisis plan, it continues to cap retail diesel prices and freeze LPG prices, while preparing a new plan for 2025-2029 to determine crisis scenarios and public assistance levels.
Meanwhile, global oil prices remain volatile. WTI crude oil prices recently dropped nearly 2% to around $63.89 per barrel following Iran's willingness to negotiate with the United States, easing concerns over potential US military action. This follows a significant price surge earlier in the week amid uncertainties over the negotiations.