Thailand’s fuel prices soared overnight by up to 22%

According to Golden Ten Data on March 26, millions of drivers in Thailand woke up on Thursday to the largest fuel price increase in decades after the Thai government was forced to cut back on fuel subsidies. The regular price announcement on Wednesday night showed that gasoline prices would rise much more than expected, with an increase of 6 baht per liter (about 18 cents), taking effect on Thursday. This resulted in a 14% to 22% increase in gasoline prices. Diesel prices, which are crucial for Thailand’s transportation, agriculture, and industrial sectors, rose by 18%, delivering a further blow to households and businesses already facing rising costs. This price hike marks a turning point for Thailand’s long-standing fuel subsidy system, which was established in the wake of the oil crisis in the 1970s. Following the outbreak of the Iran war and the subsequent rise in global crude oil prices, the Oil Fuel Fund—which aims to stabilize and subsidize domestic oil prices—faced an even larger deficit, forcing the government to scale back subsidies.