The Ministry of Energy is prepared to cope with high volatility in oil and LNG prices and is continuously implementing measures to reduce the burden of living costs.

The Ministry of Energy is prepared to cope with high volatility in oil and LNG prices, emphasizing that Thailand has sufficient reserves for 101 days and is continuously preparing measures to reduce the burden of living costs.

Date 31 July 2569 Mr. Veerapat Kiattifuengfu, Deputy Permanent Secretary and Spokesperson, Ministry of Energy. This reveals the volatile situation in the global oil market, stemming from the unpredictable conflict between the United States and Iran, which directly impacts global energy supply.

The Ministry of Energy continues to monitor the situation closely. It has been observed that the trading price in July was approximately US$7-8 per barrel higher than in June, or an increase of about 10-12%.

Although retail fuel prices in neighboring countries have increased in line with global market prices, Thailand's Ministry of Energy continues to utilize the Fuel Fund mechanism and regulate prices at refineries according to the resolution of the Energy Policy Administration Committee (EPAC) to prevent any impact on the cost of living for the public. Regarding fuel security, as of July 30, 2569, Thailand has sufficient oil reserves to meet domestic demand for 101 days.

Imported LNG, a key fuel for electricity generation, has seen a price increase. From approximately US$11 per million BTU before the war, it has risen to around US$18-20 per million BTU, an increase of almost 60%. This is due to the market's increased assessment of supply risks, as nearly 20% of global LNG supply relies on transportation through the Strait of Hormuz, and prices are expected to rise further in the near future as increased LNG usage anticipates the upcoming winter season.

“Given the highly volatile global oil and LNG prices, the Ministry of Energy continues to closely monitor and assess the global market situation daily. Regarding oil, we are utilizing the Fuel Fund mechanism in conjunction with price controls at refineries to maintain domestic retail prices.”

Regarding the impact of imported LNG prices on electricity rates, management strategies will be implemented, such as increasing gas supply from the Gulf of Thailand, purchasing electricity from short-term renewable energy sources, purchasing electricity from Laos, and increasing the operation of the Mae Moh power plant. The aim is to minimize LNG imports as much as possible, thus preventing an impact on electricity rates. The Ministry of Energy is prepared to implement all necessary measures to reduce the cost of living for the public as much as possible.”

Read news related to the economic situation across Thailand here.