Thailand Urges Fuel Tax Cuts and Biofuel Promotion to Address Oil Fund Deficit

Key summary

Energy Minister Akanat Promphan has received five urgent proposals aimed at stabilizing Thailand's Oil Fuel Fund, which recorded a deficit of 103.561 billion baht as of October 18, 2026. The measures include reducing fuel excise taxes by 1–2 baht per litre, freezing biofuel prices to offer discounts up to 8 baht per litre against other fuels, and launching campaigns to promote E20 gasohol and B20 diesel usage. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas initially supported tax cuts for biofuels, though consideration was delayed following commitments at the IMF–World Bank Group Annual Meetings 2026. Recent global oil price increases driven by the Middle East war led to retail price adjustments effective October 21, with specific subsidy and levy changes applied to B7 diesel, petrol, E10 gasohol, E20 gasohol, and E85 gasohol while maintaining steady prices for E20 and B20.