BANGKOK – The Federation of Land Transport of Thailand has announced plans to roll out phased increases in haulage charges of up to 30 percent, beginning April 1, as operators struggle to absorb soaring operating costs driven by a 6 baht-per-litre jump in diesel prices.

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Federation president Thongyu Khongkhan said the increases will start with a 10 percent rise on April 1. Further hikes of 15 percent and then 5 percent will follow on dates to be determined, depending on diesel prices at the time.

He acknowledged that road hauliers do not want to add to the growing financial burden facing consumers but insisted they have no alternative, warning that without the increase, the country’s road haulage network could grind to a complete standstill.

Concerns Over Fuel Alternatives

Thongyu also ruled out switching to B20 diesel, saying it is unsuitable for trucks and could damage engines, leading to higher maintenance costs that would further strain operators already grappling with tight margins.

Truck operators in northeastern Nakhon Ratchasima Province on Monday say rising fuel prices are hitting the transport industry hard.

The Northeastern Transport Association Thailand says fuel now accounts for about 50% of transport costs, and recent price spikes to over 40 baht… pic.twitter.com/efMTdhFbsD

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Calls for Structural Reform

The federation called for a complete overhaul of the energy pricing structure, which it described as unfair, and for the replacement of the Joint Management and Monitoring Centre for the Situation in the Middle East, chaired by Transport Minister Phiphat Ratchakitprakarn.

It is also urging the government to impose a windfall tax on oil refineries, arguing that such a measure would help capture excess profits from the oil sector during periods of global price volatility and provide relief to transport operators and consumers alike.

Industry Under Pressure

The decision reflects the mounting pressure on Thailand’s transport sector following repeated fuel price hikes. With diesel now priced at nearly 39 baht per litre, operators say the cumulative impact of rising energy costs has made it impossible to maintain existing rates without jeopardizing the stability of the industry.

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The planned increases are expected to have ripple effects across the economy, as higher transport costs typically translate into higher prices for consumer goods. The federation’s warning of a potential standstill underscores the critical role that road haulage plays in supply chains nationwide.

-Thailand News (TN)