Thailand Explores New Strategies to Stabilize Oil Fund
Energy Minister Ekkanat Promphan is seeking alternatives to borrowing to address the Oil Fuel Fund's 103.5 billion baht deficit.
At the Energy Symposium 2026, Thailand’s Minister of Energy, Ekkanat Promphan, addressed the current 103.56 billion baht deficit in the Oil Fuel Fund. To improve liquidity without resorting to additional loans, the Ministry is evaluating the potential use of accumulated reserves from the Energy Conservation Fund and dividends from state-held oil company shares.
For residents and travelers, this development is significant as it highlights the government's commitment to managing energy costs without immediate tax cuts. Minister Ekkanat emphasized that reducing excise taxes on fuel remains a last-resort measure, noting that previous tax cuts resulted in substantial revenue losses for the state. While the current deficit is high, the Minister noted it remains below the 150 billion baht peak observed during the Russia-Ukraine conflict, suggesting that current management options are still viable.
It remains to be confirmed how much funding can be reallocated from other sources and when these measures might be implemented. The Ministry is currently studying the legal constraints and objectives of the various funds involved to ensure compliance. No final decision has been reached regarding the specific amounts or the timeline for these financial adjustments. The government continues to rely on the Oil Fuel Fund mechanism and refinery margin adjustments to stabilize domestic energy prices.
