Bangkok: Brokers are preparing to lower their forecasts for the Thai stock index if oil prices exceed $90 per barrel, impacting the performance of listed companies. Meanwhile, the Ministry of Energy affirms its commitment to managing energy security alongside price stability.
According to Thai News Agency, Mr. Nattapol Khamthakrue, Assistant Managing Director of Yuanta Securities, stated that the situation in the Middle East is impacting energy prices. He estimates that every $10 increase per barrel will affect inflation by 0.5% and GDP by 0.1%. Furthermore, if Brent crude oil prices exceed $90 per barrel, it will negatively affect the earnings of various listed companies. Currently, brokers may need to revise their forecasts for the Thai stock index downwards from their previous upward forecasts due to concerns about the stability of the new government.
Minister Attapol confirmed that oil reserves have been increased to 95 days' supply and will continue to be procured. The fund mechanism will be used to stabilize diesel prices. He urged the public to help conserve energy.
Yesterday, Mr. Atthapol Rerkpiboon, Minister of Energy, reiterated that Thailand has energy security, with current oil reserves sufficient for up to 95 days, and that supply will continue. He instructed oil traders to increase their oil reserve ratio from 1% to 3% to build public confidence. Regarding the oil export suspension, exceptions will only be made for Laos and Myanmar, due to their interdependence on energy resources. Concerning the reported fuel shortages at some gas stations, which stemmed from public concerns, he instructed the Department of Energy Business and provincial energy offices nationwide to deploy officers to investigate and prevent hoarding, and to expedite the delivery of sufficient fuel.
Regarding measures to reduce the cost of living, the government will use the Fuel Fund mechanism to freeze diesel prices for 15 days (until March 17, 2026). If the situation persists, compensation will be reconsidered. In addition, there are plans to use domestically produced B100 diesel and may consider importing lower-standard refined oil products because they are cheaper.
While the power generation sector has accelerated the procurement of additional LNG, increasing the proportion of electricity generation from renewable energy sources, biomass, coal, and boosting natural gas production in the Gulf of Thailand to assure the public of sufficient electricity supply.
The Ministry of Energy reaffirms that, as of today, we have a total oil reserve sufficient for 95 days and continue to procure supplies from all potential sources. Furthermore, we have contingency plans in place should the situation drag on, including supplementing the supply with B100, adjusting the specifications of imported oil to match the situation, and utilizing LNG and various other fuels for the electricity sector to assure the public that Thailand will not experience power outages. We will also fully utilize the Fuel Fund mechanism to manage oil prices. We ask the public to be confident that we have sufficient energy and will manage the situation to the best of our ability during this period of unrest to minimize the impact on the public, said Mr. Atthapol.