Economy
Thailand’s Oil Fund Faces Liquidity Crisis as Debt Nears 100 Billion Baht
The Oil Fuel Fund Office is preparing for a potential new 100 billion baht loan as its deficit approaches a critical threshold due to ongoing global energy price volatility.
According to a report by Khaosod Online, Thailand’s Oil Fuel Fund is facing severe liquidity constraints, with its deficit currently standing at approximately 92 billion baht. The fund is accumulating debt at an average rate of 700 million baht per day, and officials expect the total deficit to exceed 100 billion baht by late September or early October 2026.
The financial strain is primarily attributed to the ongoing burden of subsidizing fuel prices amidst geopolitical tensions in the Middle East, which have kept global energy costs volatile and elevated. While the fund previously secured 20 billion baht in loans from domestic commercial banks, those funds have already been utilized to manage existing obligations.
To address the looming shortfall, the fund is drafting a new borrowing plan. While a potential ceiling of 100 billion baht is being discussed to ensure sufficient liquidity, officials noted that any borrowing would likely be executed in tranches based on necessity and market conditions.
For residents and travelers, this situation highlights the ongoing pressure on domestic fuel prices. While the fund aims to stabilize costs, the necessity for further borrowing underscores the fragility of the current energy subsidy model. The final loan amount and specific terms remain subject to further policy discussions between the Ministry of Energy and relevant authorities.
