Authorities have implemented a reduction in the ex-refinery price of diesel, a measure designed to mitigate potential increases at the pump. This price adjustment, effective until August 15, aims to stabilize domestic diesel costs, which are critical for the transportation and logistics sectors. While not guaranteeing an immediate drop in retail prices, the intervention is intended to prevent or slow down upward price movements.
Global Market Pressures Drive Price Adjustments
The decision follows a period of significant volatility in global oil markets. The benchmark Brent crude oil price surpassed $100 per barrel for the first time in two months on Thursday. This surge was attributed, in part, to an attack by Houthi rebels on two Saudi oil tankers in the Red Sea, occurring amidst escalating tensions between the United States, Israel, and Iran in the Middle East. These geopolitical events have heightened concerns about the stability of energy supplies and shipping routes.
Regional reference prices in Singapore have consequently seen a sharp rise. On Thursday, diesel was quoted at $167.62 per barrel, and gasoline at $128.33 per barrel. These international price increases directly impact domestic fuel costs. In response to these global market dynamics, retail prices for diesel and gasoline were already raised by 0.90 baht per liter on Thursday. Diesel is now priced at 36.69 baht per liter, and gasohol 91 (a blend of gasoline and 10% ethanol) stands at 36.32 baht per liter.
Financial Mechanisms for Price Stabilization
The Energy Policy Administration Committee, under the chairmanship of Energy Minister Akanat Promphan, has
