BANGKOK— The Thai government issued an emergency order on Friday, April 24, 2026, to slash ex-refinery diesel prices for the second time this month, moving to protect domestic consumers and businesses from a volatile global oil market fueled by escalating tensions in the Middle East.
The new measure, published in the Royal Gazette, implements a steeper two-stage reduction in prices for high-speed diesel through May 19, aiming to curb rising living costs and prevent a spike in production expenses for the private sector.
The Energy Policy Administration Committee (EPAC) approved the deeper cuts during an emergency meeting on Thursday. This decision replaces a previous, less aggressive price-cut order issued on April 8.
According to the official announcement in the Royal Gazette, the ongoing conflict involving the United States, Israel, and Iran has caused “sharp swings” in crude and refined oil prices, threatening the stability of Thailand’s domestic economy.
“The conflict in the Middle East … has directly affected the global fuel supply chain and shows no sign of easing soon,” the government stated in its official gazette filing. Officials emphasized that without this intervention, the pressure from global markets would lead to a significant increase in the cost of living for the general public.
Details of the New Price Reductions
The government’s plan rolls out in two distinct phases to manage the transition and provide immediate relief at the refinery level:
- Phase 1 (April 24 – May 9):A reduction of 5.00 baht per liter for B0, Regular B7, and B20 high-speed diesel.
- Phase 2 (May 10 – May 19):The reduction will adjust to 3.00 baht per liter for all three types of high-speed diesel.
These figures represent a significant expansion of the previous relief effort, which had only offered a 2-baht-per-liter cut. By targeting the “ex-refinery” price—the price at which oil is sold from the refinery—the government is using its powers under the 1973 Emergency Decree on the Remedy and Prevention of Fuel Shortages to force a lower price ceiling before fuel reaches the pumps.
Protecting the Grassroots Economy
The intervention is designed to act as a buffer for both households and the commercial sector. Diesel is the primary fuel for Thailand’s transport and logistics industry. By keeping these costs low, the government hopes to prevent a “domino effect” where higher transport costs lead to more expensive food and consumer goods.
Industry analysts noted that while global prices remain unpredictable, the government is prioritizing internal stability. The measure was issued under Section 3(1) of the 1973 Emergency Decree and Prime Minister’s Order No. 15/2019, which allows for rapid state intervention during energy crises.
Monitoring Future Volatility
While the current order is set to expire on May 19, the government has signaled that it will continue to monitor the situation in the Middle East closely. The Energy Policy Administration Committee has the authority to extend or modify these measures if global supply chains continue to suffer from geopolitical instability.
For now, the focus remains on ensuring that the “energy shock” does not derail Thailand’s economic recovery. By implementing these refinery-level cuts, the administration is betting that a temporary loss in refinery revenue is a necessary trade-off to maintain public purchasing power and business competitiveness.
