Bangkok, March 26, 2026
Thai motorists began facing significantly higher pump prices today after the government approved a sharp 6-baht-per-litre increase across all fuel types, effective from March 26th.
The Oil Fuel Fund Management Committee (กบน.) decided on March 25th to reduce subsidies for both diesel and petrol groups, resulting in an immediate retail price hike of approximately 6 baht (around US$0.18) per litre for all fuels. The adjustment comes as escalating tensions in the Middle East continue to push global crude oil prices higher, with a corresponding spike in Singapore diesel costs, Thailand’s key import benchmark.Officials noted that the state Oil Fuel Fund had been absorbing massive daily subsidy burdens of around 2.5 billion baht (roughly US$76 million) per day to keep domestic prices artificially low.
This heavy financial strain on the fund’s liquidity prompted the decision to unfortunately pass on a larger portion of the global price surge to consumers.
The government has called on the public to exercise understanding and practice energy conservation measures to help mitigate the impact. Authorities have also indicated that targeted relief measures for vulnerable groups, including low-income households and certain transport operators, are being prepared.
The price increase has already triggered panic buying at petrol stations nationwide, including long queues in popular tourist destinations such as Pattaya as we reported here, as drivers rushed to refuel before the new rates took effect.
This marks one of the largest single-day fuel price adjustments in recent years and is expected to affect transportation costs, logistics, and the overall cost of living in the coming weeks. The government will continue to monitor the situation closely amid ongoing volatility in global energy markets.
The move reflects the challenges Thailand faces in balancing fiscal responsibility with efforts to shield citizens from external economic shocks.
