Bangkok (VNA) – Thailand is grappling with its most severe energy crisis on record, with the Government moving to seize "windfall profits" from refineries to prevent a total collapse of the country’s fuel subsidy mechanism.
Prasert Sinsukprasert, Permanent Secretary for Energy, revealed on April 3 that global diesel prices have surged to nearly 300 USD per barrel, almost triple the standard rate of 92 USD. The current volatility far outstrips the previous records set during the Russia-Ukraine conflict, which saw prices peak at 150 USD.
The crisis has left the state’s Fuel Fund nearly 50 billion baht in deficit. Although the fund holds a 150-billion-THB credit line, officials warned that at the current rate of depletion, these resources will last only another two months.
To maintain market stability, the Government has made modest price increases over the last 48 hours. Prasert explained that these adjustments are necessary to prevent "price shocks" that could lead to hoarding or fuel smuggling across Thailand’s borders. Simultaneously, the Government continues to spend 30 million THB daily to subsidise Liquefied Petroleum Gas (LPG), a move intended to keep food prices stable and protect the general cost of living.
Meanwhile, Singapore will announce enhanced measures and targeted support for households and businesses next week, amid rising energy costs and concerns, said Prime Minister Lawrence Wong.
According to the PM, Singapore is also working with trusted partners such as Australia and New Zealand to deepen existing cooperation while ensuring supply lines for essential goods and food remain open during crises./.
