Bangkok: In a crucial address to Parliament, Prime Minister Anutin Charnvirakul emphasized the urgent need for a 400 billion baht loan decree aimed at mitigating Thailand's energy crisis. The proposed financial initiative is intended to reduce the cost of living, advance the nation's energy transition, and lessen dependence on foreign fossil fuels.

According to Thai News Agency, the Prime Minister outlined the impact of the Middle Eastern conflict on global energy supplies, particularly highlighting disruptions in the Strait of Hormuz. This geopolitical tension has resulted in increased energy prices, directly affecting Thailand, which imports nearly half of its oil from the region. The resulting strain on production costs, goods prices, and the public's purchasing power necessitates rapid intervention to prevent prolonged economic fallout.

Charnvirakul argued that the Emergency Decree is essential due to the insufficiency of regular fiscal resources. With the mid-year budget already allocated for pressing issues like disaster relief and border security, and with only 50 billion baht in reserve funds, the need for additional financial measures is clear. He noted that 72% of the 2026 budget has been spent, and preparations for an additional budget would take months, while the upcoming 2027 budget is not available until late 2026.

The decree, which aims to maintain economic stability, outlines objectives to assist affected citizens, farmers, and businesses and accelerate a shift away from fossil fuels. The proposed loan would be split evenly between immediate relief and long-term energy transition efforts, including supporting renewable energy and developing innovation and skills in the energy sector.

The Prime Minister assured Parliament that the borrowing plan remains within fiscal discipline frameworks and that public debt levels would be managed responsibly. He emphasized that the funds would be subject to strict oversight to ensure alignment with the decree's goals, utilizing the 5T principles of Target, Transition, Transformation, Transparent, and Together.

In closing, Charnvirakul stressed the gravity of the energy crisis and urged the House of Representatives to approve the decree, ensuring timely and adequate response measures to aid citizens and secure Thailand's energy future.