Bangkok: Ekanat Promphan, the Minister of Energy, addressed the House of Representatives regarding the ongoing energy crisis, emphasizing that Thailand is under pressure to expedite its energy transition. According to Thai News Agency, Ekanat made it clear that the government would resort to borrowing only in the event of a genuine crisis. He proposed strategies such as leveraging refinery funds to reduce oil prices, promoting solar energy, and decreasing Thailand's dependency on fuel imports.

During the discussion on the Emergency Decree, which authorizes the Ministry of Finance to borrow funds to mitigate the energy crisis and advance a national energy transition by 2026, Ekanat highlighted the volatility in energy costs due to the Middle East conflict. He noted that crude oil prices have escalated significantly, occasionally surpassing $100 per barrel, while refined oil prices, particularly diesel, have increased due to attacks on energy infrastructure.

Ekanat explained that the government has avoided addressing the issue through expenditure alone. Reducing excise taxes would lead to a decrease in government revenue, and utilizing the Oil Fund would necessitate future payments from fuel users, eventually resulting in borrowing. Hence, the government has implemented policy measures under the Emergency Decree on Prevention and Resolution of Oil Shortages. These measures include gathering data from refineries, investigating excessive profits from high refining margins, and utilizing those funds to reduce pump prices, amounting to 17,442 million baht.

He further elaborated on the need for restructuring the oil price system, which has been unfair, to alleviate the public's burden. Despite Thailand importing over 90% of its oil, the government is pressing for an accelerated energy transition, focusing on biofuels like ethanol and biodiesel made from domestic agricultural products.

Promoting B20 and E20 biofuels is expected to cut costs for the transportation sector and empower Thai farmers by turning agricultural crops into fuel. For electricity, with Thailand importing around 30% of its LNG, the government has reduced electricity costs for households and is tackling structural issues, including power purchase agreements and clean energy market regulation.

Ekanat announced that the Ministry of Energy will soon release a 25-year Power Development Plan (PDP) to facilitate the shift from fossil fuels to renewable energy, particularly solar power. This plan aims to empower citizens by investing in solar panels, turning them into community-owned power plants.

He assured that the loan would not fund corporations but would instead create opportunities for citizens, reducing reliance on imported fuels and dismantling energy monopolies. Ekanat appealed to the House to support the emergency decree, highlighting the opportunity to transform the energy structure for the benefit of the Thai people.