Bangkok: The Ministry of Energy has urged the public not to panic and stockpile fuel, assuring there is adequate supply and emphasizing the use of the fund mechanism to manage prices. The ministry reiterated that there are sufficient oil reserves and ongoing procurement from alternative sources. The oil fund mechanism is set to be employed to stabilize prices. Officials clarified that oil exports to Laos align with existing agreements, with strict controls in place to prevent further exports to third countries.
According to Thai News Agency, Mr. Veerapat Kiattifuengfu, Deputy Permanent Secretary and spokesperson for the Ministry of Energy, disclosed that an urgent meeting with oil traders was convened to accelerate oil procurement following the announcement of the Strait of Hormuz closure by Iran. Traders are advised to source oil from alternative locations such as the United States, West Africa, and Malaysia to maintain domestic reserves. The Ministry plans to leverage the Fuel Oil Fund to counteract rising oil prices.
The Ministry of Energy is actively monitoring risks to prevent fuel shortages. As of March 1, 2026, domestic reserves included 4,877 million liters, with an additional 2,783 million liters of crude oil in transit, totaling 7,660 million liters-sufficient for 60 days without new supply. Despite these reserves, continued procurement from alternative sources is feasible, though price increases are anticipated in line with global market trends.
Regarding oil exports to Laos, the Ministry confirmed these are in line with pre-existing contracts. Thailand maintains a cooperative energy relationship with Laos, exchanging oil and electricity. Strict measures are in place to prevent exports to third countries. Should the situation become critical, the Department of Energy Business may impose conditions to suspend exports, while considering impacts on neighboring countries vital to Thailand's energy security.
Mr. Veerapat urged the public against illegal and potentially hazardous fuel hoarding, assuring that domestic reserves are sufficient to meet demand. Despite reserves covering only 60 days, the Ministry is securing fuel from diverse sources and stands ready to employ the Fuel Fund to mitigate public financial burdens. The Ministry will closely observe the situation and adjust export policies as necessary, prioritizing Thai energy security and public interest.