Thailand Overhauls Oil Refinery Pricing Structure to Reduce Costs
Energy Minister Ekniti Prompan has announced a historic revision to oil refinery pricing, aiming to save consumers over 10 billion baht annually by removing outdated hidden costs.
On October 28, 2026, Thailand’s Minister of Energy, Ekniti Prompan, signed an order to implement a historic restructuring of the nation’s oil refinery pricing formula. Effective October 29, 2026, the new calculation method will reduce the price of all fuel types by between 0.0875 and 0.3548 baht per liter.
According to Khaosod Online, this reform removes 'fictitious' costs that have been embedded in the pricing formula since 2004. Previously, Thai refinery prices were calculated by referencing the Singapore market and adding hypothetical costs for shipping, insurance, and losses, despite the majority of fuel being refined domestically. The new policy, approved by the Energy Policy Administration Committee, eliminates these phantom logistics charges and reduces oil reserve fees by one-third.
For residents and travelers, this change is expected to lower the overall cost of fuel, potentially easing inflationary pressure on transportation and goods. The government estimates this move will reduce the financial burden on the public by approximately 10.8 billion baht per year. While the policy is set to take effect immediately, the long-term impact on retail pump prices remains to be seen as market conditions fluctuate. Consumers should monitor local fuel stations to observe how these refinery-level adjustments translate into final prices at the pump.
