TIA Warns of Prolonged Oil Crisis as Thailand's Energy Fund Hits Negative 100 Billion Baht

Key summary

Mr. Mongkol Lila-dham, Chairman of the Thai Investment Promotion Association (TIA), warned on October 25 that Thailand imports 80-90% of its energy and faces a prolonged oil crisis due to tensions in the Middle East. The National Fuel Fund is currently negative by over 100 billion baht and could reach 200 billion baht if high prices persist. Mr. Lila-dham cautioned against hasty reductions in excise taxes, noting that crude oil and refining costs account for over 60% of retail prices, while tax revenue amounts to hundreds of billions of baht annually. He highlighted that high energy costs impact both low-income earners (under 15,000 baht/month) and the middle class (around 60,000 baht/month), risking simultaneous inflation and deflation.