BANGKOK — Fuel prices across Thailand surged by six baht per litre on Thursday morning, marking the second increase in three days as the government abandoned costly subsidy programs in response to spiraling global oil prices driven by Middle East tensions.

Thai Oil Crisis Eases After Government Intervention

The price hike, effective from 5am, applies to diesel, benzine and all grades of gasohol — including Gasohol 95, Gasohol 91, E20 and E85. The increase follows a roughly two-baht rise implemented just two days earlier, compounding the financial strain on consumers and businesses already grappling with rising costs.

Subsidy Burden Becomes Unsustainable

The Oil Fuel Fund Executive Committee resolved on Wednesday to sharply increase retail prices, citing the unsustainable burden on the Oil Fuel Fund amid escalating global oil prices. The committee reported that the diesel price in Singapore had surged from US$198.20 per barrel on Monday to US$242.91 per barrel on Wednesday — a stark indicator of the volatility gripping energy markets.

The committee noted that maintaining subsidies at previous levels would have required the Oil Fuel Fund to shoulder an additional financial burden of approximately 2.592 billion baht per day, or roughly 80 billion baht per month — a level deemed unsustainable by authorities.

Regional Price Alignment

The committee said the price increase is also intended to maintain alignment with regional fuel prices, citing neighboring Malaysia, where diesel prices were raised from 32.40 baht per litre to 39.54 baht per litre on March 16.

Motorists crowd a petrol station in Bangkok, with long queues spilling onto the street, as drivers rush to fill up ahead of a sharp fuel price hike of 6 baht per litre set to take effect on Thursday, 26 March. #Thailand #ราคาน้ำมัน pic.twitter.com/Kn7W9Uob6q

— Khaosod English (@KhaosodEnglish) March 26, 2026

New Retail Prices

The latest retail fuel prices, effective Thursday, are as follows:

• Benzine: 49.64 baht per litre

• Gasohol 95: 41.05 baht per litre

• Gasohol 91: 40.68 baht per litre

• Gasohol E20: 36.05 baht per litre

• Gasohol E85: 32.79 baht per litre

• High-speed diesel: 38.94 baht per litre

Consumer Relief Measures

While the government has ended its broad subsidy program, officials said they are considering targeted measures to help ease the impact on consumers. The sharp price increases are expected to have ripple effects across the economy, potentially driving up transportation costs and, in turn, the prices of goods and services.

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The decision to allow fuel prices to rise reflects the difficult balancing act facing policymakers as they seek to maintain fiscal discipline while protecting consumers from the full force of global energy market volatility. For now, motorists and businesses will bear the immediate impact of prices that have climbed dramatically in a matter of days.

-Thailand News (TN)