Bangkok (VNA) – An Energy Ministry official of Thailand has warned that domestic oil prices are expected to remain high until the final quarter of this year, and that Thai motorists will continue to face high costs at the pump despite international developments that could stabilise oil markets.
As reported by the Bangkok Post, the energy official explained that several factors are keeping domestic prices high. More critically, recent military attacks in the Middle East have damaged oil production, storage and transportation facilities, particularly refineries and liquefied natural gas plants.
With many Asian countries lacking refining capacity, reduced supply has pushed refined oil prices higher, the official said. Forward contracts also point to sustained pressure.
Domestic prices are further shaped by the Oil Fuel Fund, which cushions consumers against volatility. The fund subsidises fuel when global prices surge and collects levies when they fall.
However, heavy spending has left the fund in a deep deficit. Losses stood at 63.7 billion THB (1.95 billion USD) in mid-May, narrowing to 58.4 billion THB by June 15, according to the Oil Fuel Fund Office.
The official stressed that retail prices cannot be cut immediately when global crude declines as levies must be collected to repay debt./.
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