Thailand’s Fishing Industry Grinds to Halt as Diesel Shortages Bite

BANGKOK — Thailand’s vital fishing industry is facing a severe crisis as diesel shortages and soaring prices force vessels to remain in port, with industry leaders warning that more than half of the country’s 9,000 fishing boats may be unable to operate.

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Many fishing vessels in the coastal waters of Songkhla and Samut Songkhram are no longer setting out to sea as subsidised diesel becomes increasingly unaffordable, despite government measures intended to keep the industry afloat.

The Thai Fisheries Association has issued a stark warning that more than half of the nation’s 9,000 fishing boats may have to remain in port due to shortages and rising prices of excise tax-discounted “green” diesel specifically allocated for fishermen. This specially designated fuel is officially priced at 20 baht per litre, compared with the standard pump price of approximately 30 baht.

However, many boat owners report that the price in Samut Songkhram and Songkhla has surged to as high as 34 baht per litre, making it financially impossible to operate. The discrepancy between official and actual prices has left fishermen struggling to cover basic operating costs.

Sinchai Sathirayakorn, president of the Association of Paired Trawlers in Samut Songkhram, outlined the severe economic impact on his members. He explained that a pair of trawlers requires about 1,200 litres of fuel per day, with each fishing trip typically lasting around 12 days, meaning each pair of vessels needs approximately 15,000 litres of fuel per trip. With about 400 trawler pairs operating in the province, fuel accounts for roughly 80% of operating costs.

“With the price of green diesel rising from 20 baht to 34 baht per litre, many trawler owners are struggling to justify the cost of going to sea,” Sinchai stated, highlighting the impossible arithmetic facing fishermen who must decide whether sailing is economically viable.

The reduced fishing activity has already begun affecting consumers, with seafood prices reportedly increasing by 20 to 100 baht per kilogram due to diminished catches. Chanon Attanart, vice president of the Songkhla Fisheries Association, confirmed that the Thai Fisheries Association is urgently seeking government assistance to address the crisis affecting the industry.

Wider Fuel Shortages Impact Daily Life

Beyond the fishing industry, petrol stations in several provinces have shortened their operating hours after running out of fuel, largely due to a surge in demand from motorists fearing shortages and higher prices. The panic buying has created a self-fulfilling prophecy, as motorists rush to fill tanks, accelerating the depletion of available supplies.

In Maha Sarakham province, filling stations along the bypass have been closing by early evening after running out of fuel, leaving motorists scrambling to find open stations during limited hours. One motorist in Nong Bua Lamphu described his frustrating search, saying he had to stop at seven petrol stations before finally finding one with enough fuel to sell.

In Chainat province, petrol stations have implemented rationing measures, limiting purchases to 500 baht for general vehicles and 1,000 baht for ambulances and other emergency vehicles. These restrictions aim to stretch available supplies and ensure that critical services can continue operating.

Cross-Border Fuel Runs

In Betong district near the Malaysian border, many motorists have resorted to crossing into Malaysia to refuel due to greater availability and lower prices across the border. However, Malaysian authorities have responded by capping purchases at 290 baht worth of fuel per Thai-registered vehicle, limiting the effectiveness of this strategy.

The price differential remains significant despite the cap. Petrol in Malaysia costs approximately 27 baht per litre, compared to 40.18 baht in Betong, while diesel sells for around 32 baht per litre in Malaysia, compared to 30.48 baht in Betong. The lower petrol prices make the cross-border journey worthwhile for many Thai motorists, despite the purchase restrictions.

The fuel shortages affecting Thailand are part of a broader crisis hitting Southeast Asia due to disruptions in oil imports from the Middle East following the escalation of the US-Israeli conflict with Iran, which has effectively closed the Strait of Hormuz. This strategic waterway carries about one-fifth of the world’s oil, and Thailand’s heavy dependence on fuel imports from the region has left it vulnerable to supply disruptions.

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Similar issues have been reported across the region, with neighbouring countries experiencing their own fuel crises. In Cambodia, over 400 fuel depots and stations remain closed due to delays in new stock, while Myanmar has implemented an alternate-day driving rationing system for private vehicles to conserve scarce fuel supplies.

-Thailand News (TN)

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