Bangkok: Mr. Sitthithorn Thananithichot, a lecturer at the Faculty of Political Science at Chulalongkorn University, has commented on the Thai government's updated energy strategy in response to the ongoing crisis in the Middle East. The strategy moves away from traditional price freezes, opting instead for targeted assistance measures aimed at vulnerable groups.

According to Thai News Agency, the government's decision to end oil price freezes and focus on targeted assistance aligns with political economy principles. This shift is seen as a direct response to the significant impact the Middle East conflict, particularly the Iran-Iran war, has had on global energy prices, subsequently affecting Thailand's economy due to its reliance on energy imports.

Initially, the government's approach involved stabilizing fuel prices via the Fuel Fund to alleviate immediate public burdens. However, this strategy revealed limitations, such as increased opportunities for hoarding and speculation, which led to resource leakage and negatively affected certain population groups. The revised approach allows oil prices to better reflect market conditions while providing targeted subsidies to low-income earners, the transportation sector, and small businesses. This method is deemed more effective as it reduces budget leakage and diminishes hoarding incentives.

Mr. Sitthithorn emphasized that allowing energy prices to follow market mechanisms, paired with targeted relief, is consistent with modern political economy principles. Instead of suppressing prices broadly, the government aims to support those truly affected. However, market fluctuations will impact the prices of other goods and services, presenting a challenge in preventing consumer exploitation during crises.

To address these challenges, Mr. Sitthithorn recommended three urgent measures: rigorously enforcing laws against hoarding and speculation, transparently disclosing energy production costs, and involving the public in market regulation through platforms for whistleblowing and inspection.

Dr. Sathit highlighted that balancing market mechanisms with effective regulation is crucial in preventing consumer exploitation as energy prices begin to reflect market realities.