Bangkok (VNA) – The cabinet of Thailand has approved a 20-billion-THB (approximately 610 million USD) loan for the Oil Fuel Fund Office (OFFO) in a bid to stabilise domestic fuel prices and address mounting liquidity pressures.
As of April 5, the Oil Fuel Fund of Thailand reported a deficit of about 53.2 billion THB, largely due to unpaid compensation owed to fuel traders. This has led to liquidity shortages among businesses, affecting their ability to procure fuel and raising concerns over potential domestic supply disruptions.
Under the approved plan, the Thai Ministry of Finance will not guarantee the new loan. Instead, the OFFO will be responsible for repaying the debt using the fund’s own revenue. Loan agreements are expected to be signed between June and August 2026, with repayment scheduled from July 2028 to August 2031.
The Finance Ministry has also instructed the fund to prioritise repayment of existing government-backed debt worth 25.1 billion THB to safeguard national financial credibility.
Following the new borrowing, the fund’s total outstanding loans will rise to 45.1 billion THB, exceeding the 40-billion-THB cap set under the 2019 Oil Fuel Fund Act. However, authorities noted that the law allows for adjustments to the borrowing ceiling in exceptional circumstances, subject to government approval./.
