Bangkok: The Prime Minister has affirmed that there is sufficient domestic oil supply and has ordered a freeze on oil prices to the fullest extent.
According to Thai News Agency, Prime Minister and Minister of Interior Anutin Charnvirakul expressed confidence in the domestic oil supply, noting that PTT, a state-owned enterprise, is protected by national security laws. He confirmed that the export of 7 million liters of surplus oil to Laos remains necessary due to the close relationship and reliance on Laos for electricity. Discussions are ongoing to stabilize oil prices following recent increases that have impacted commodity costs, although the situation is not deemed critical.
Prime Minister Anutin addressed concerns over Iran's closure of the Strait of Hormuz and outlined measures for oil management. He clarified that Thai oil companies are controlled by PTT, with the state holding a majority stake. Although there is a current export ban, it does not apply to Laos, due to the need to maintain electricity supply from the neighboring country. He emphasized that oil exports to Laos are distinct from domestic consumption.
The Ministry of Energy reported that Thailand can refine approximately 170 million liters of oil, with about 130 million liters used domestically, 7 million liters exported to Laos, and the remaining oil sent to other countries. Anutin has instructed that if the situation worsens, the 30 million liters currently sold for revenue must be reallocated for domestic use.
Regarding recent fuel price hikes by two major private companies, the Prime Minister stated a need to review market mechanisms with the aim of freezing prices as much as possible. He plans to discuss stabilization measures with the Ministry of Commerce and the Ministry of Energy, as fuel prices affect the cost of goods and the population's livelihood.
In response to public panic buying and hoarding of fuel, the Prime Minister assured the public that the situation is not critical and that fuel reserves are sufficient. He highlighted that Thailand has alternative crude oil sources, ensuring supply beyond the next 60 days. However, he acknowledged potential impacts on prices due to global production losses and market mechanisms, necessitating a detailed analysis for appropriate management strategies.
The Prime Minister reiterated that daily oil consumption in Thailand is sufficient for domestic needs. He instructed the Ministry of Energy and PTT, with the Permanent Secretary of the Ministry of Commerce as Chairman of the PTT Board, to clarify these issues for the public to foster understanding.