Middle East crisis impacts Thailand's energy security, fuel fund loses $32 million daily to stabilize oil prices

Golden Ten Data reported on March 11 that, in order to maintain low domestic diesel prices, the Thai government is using the Fuel Fund for substantial subsidies. Thai Energy Minister Ataporn stated on Wednesday that the fund is currently losing more than 1 billion baht (approximately $32 million) per day, and by March 18, the cumulative loss may reach 10 billion baht. Ataporn said the government will assess the next steps based on the fund's status and global oil prices, but will continue subsidies for now. He mentioned that at the beginning of the Russia-Ukraine conflict, the fund managed debt as high as 120 billion baht. Regarding the Fuel Fund, Ataporn did not elaborate on what actions the government might take if losses expand. Possible measures may include gradually increasing diesel prices and raising the fund's borrowing limit. Commerce Minister Supachai told reporters at an event on Wednesday: "There is no need to panic. If the situation continues, we will introduce additional measures. We are closely monitoring the situation."