The Oil Fuel Fund Office (OFFO) is accelerating the use of the Oil Fuel Fund to subsidise diesel by as much as 18.31 baht per litre to prevent retail prices from rising above 30 baht per litre, amid sharp volatility in global oil markets that is pressuring energy costs and household living expenses. The office said the measure is intended as a short-term price-stability tool, while maintaining the principle that prices should reflect real costs and avoiding cross-subsidies between fuel groups.
OFFO issued Announcement No. 21 on contribution rates to the fund, compensation, refunds from the fund, and repayment of compensation to the fund for petroleum products, aimed at keeping domestic fuel prices at an appropriate level. The announcement takes effect from March 14, 2026.
The main objective is to ease the cost-of-living impact after domestic retail fuel prices showed signs of rising beyond what is considered appropriate—set at more than 30 baht per litre. OFFO said allowing prices to climb unchecked could have broad economic consequences and affect national energy security.
However, OFFO stressed that the intervention is temporary, and that it continues to adhere to cost-reflective pricing to avoid distorting market mechanisms, while also avoiding cross-subsidies.
