Bangkok: Energy Minister Ekanat Promphan indicated that global oil prices have started to fall, benefiting from the Singapore market. He is closely monitoring the Middle East situation and preparing oil reserves to cope with any crisis and support prices during the Songkran holiday.
According to Thai News Agency, Ekanat, in an interview prior to the Cabinet meeting of 2026, addressed the current oil price situation, stating that the trend for crude oil and refined oil prices in the global market is beginning to decline, particularly the price of diesel in the Singapore market, which has fallen from approximately US$300 to around US$200 over the past 4-5 days. This presents an opportunity to reduce retail prices at gas stations in Thailand to some extent. However, he emphasized the need to closely monitor the uncertain situation in the Middle East, even with positive signs from negotiations, as the outcome remains unclear. Therefore, cautious management of the situation is necessary.
When asked by reporters about the Songkran festival period from April 10-16, the Minister of Energy stated that even though it was a long holiday period, the ministry continued to monitor the situation closely. Two key missions were prioritized: ensuring sufficient oil supply for domestic use and accelerating the replenishment of crude oil reserves to cope with any potential tensions or severe crises; and closely monitoring global oil price trends to assess and manage domestic prices. He acknowledged that domestic oil prices would need to adjust according to the global market, but suggested that the Fuel Fund mechanism could be used to mitigate price increases or decreases to some extent.
When asked by reporters about the crude oil procurement situation, Mr. Ekanat revealed that the amount of crude oil imported in April was still on schedule, while in May, almost all the required amount had been procured. For June, additional orders are being gradually placed. The ministry is closely monitoring the situation daily because of the high level of uncertainty in the global market. Even though orders have been placed, there is a risk of competition in the global market.
Regarding crude oil imports, Thailand confirms that it diversifies its sources across multiple regions and does not rely on any single source. Considerations are made based on both oil quality and compatibility with domestic refineries' processes. Discussions are also underway with the Ministry of Foreign Affairs to prepare for government-to-government (G2G) purchases if necessary.
Regarding the status of the Fuel Fund, it currently remains in a deficit of almost 60 billion baht, a significant drop from its pre-crisis status. During the peak of the crisis, losses reached as high as 2.5 billion baht per day, while the situation has improved, with losses now in the hundreds of millions of baht per day. If the fund can maintain its liquidity, it may not need to request a loan guarantee from the Ministry of Finance. However, preparations have been made should such a need arise.
Furthermore, the Ministry of Energy is preparing to use several mechanisms to stabilize oil prices, not relying solely on the fund. They are planning to summon refinery operators for discussions to seek their cooperation in reducing refining margins and alleviating the burden on the public. Previously, refining margins were reduced by approximately 2 baht per liter from the Singapore market reference price.
The refining margin adjustment will be reviewed periodically based on market conditions. The Ministry will use actual cost data from operators in its decision-making process to ensure fairness to both businesses and the public. Mr. Ekanat emphasized that although the global oil price situation has begun to ease, high uncertainty remains due to geopolitical factors. Therefore, the Ministry of Energy will continue to closely monitor the situation and use all measures to maintain the country's energy stability and minimize the impact on the public.