Bangkok: The Cabinet has approved a 20 billion baht loan for the National Energy Policy Council (NEPC) to boost the liquidity of the Oil Fund and stabilize energy prices amidst the global crisis.

According to Thai News Agency, this decision comes in response to the ongoing conflict between the United States, Israel, and Iran, which began in late February 2026. The conflict has led to a decrease in global fuel supply, resulting in increased oil prices that have affected retail prices in Thailand and the cost of living for the public.

As of April 5, 2026, the Fuel Fund reported a deficit of approximately 53 billion baht, primarily due to outstanding debts totaling around 56 billion baht for various types of fuel subsidies owed to fuel traders. This deficit has caused a lack of liquidity for operators, impacting their ability to procure fuel and posing a risk of domestic shortages.

At the meeting of the Fuel Fund Management Committee (FFMC) on April 10th, a resolution was passed to propose to the Cabinet for approval of a loan for the National Fuel Price Stabilization Council (NFPC). The objective is to maintain domestic fuel price stability at an appropriate level during the fuel crisis. The plan involves utilizing the 20 billion baht loan from June to August 2026, with plans to repay the loan between July 2028 and August 2031.

The Prime Minister's spokesperson emphasized that the approval of this loan aims to enhance the liquidity of the Fuel Fund. This measure is expected to alleviate the energy price crisis, maintain oil prices at an appropriate level, and align with the global market situation amidst the ongoing energy crisis.