Bangkok: The Ministry of Energy is prepared to cope with high volatility in oil and LNG prices, emphasizing that Thailand has sufficient reserves and is continuously preparing measures to reduce the burden of living costs. Mr. Veerapat Kiattifuengfu, Deputy Permanent Secretary and Spokesperson of the Ministry of Energy, revealed that the global oil price market is facing severe volatility due to the unpredictable conflict between the United States and Iran, which directly impacts global energy supply. The Ministry of Energy continues to monitor the situation closely. He noted that July's oil prices were approximately US$7-8 per barrel higher than June's, representing a 10-12% increase.
According to Thai News Agency, although retail fuel prices in neighboring countries have increased in line with global market prices, Thailand's Ministry of Energy continues to utilize the Fuel Fund mechanism and regulate refinery prices according to the resolution of the Energy Policy Administration Committee (EPAC) to prevent any impact on the cost of living for the public. Regarding fuel security, as of July 30, 2026, Thailand has sufficient oil reserves to meet domestic needs for 101 days. Meanwhile, imported LNG, a key fuel for electricity generation, has increased significantly. From approximately US$11 per million BTU before the war, it has risen to around US$18-20 per million BTU, an increase of almost 60%. This is due to the market's increased assessment of supply risks, as nearly 20% of global LNG supply relies on transportation through the Strait of Hormuz, and prices are expected to rise further in the near future due to increased LNG usage during the upcoming winter season.
"Given the highly volatile global oil and LNG prices, the Ministry of Energy continues to closely monitor and assess the global market situation daily. Regarding oil, we are utilizing the Fuel Fund mechanism in conjunction with price controls at refineries to maintain domestic retail prices. As for imported LNG, which impacts electricity rates, we are managing the situation through measures such as increasing gas supply from the Gulf of Thailand, purchasing electricity from short-term renewable energy sources, purchasing electricity from Laos, and increasing the operation of the Mae Moh power plant to minimize LNG imports. This will help prevent an impact on electricity rates. The Ministry of Energy is prepared to implement all necessary measures to reduce the cost of living for the public," Mr. Veerawat said.