Akanat proposes energy loan for transition and oil price reduction

MGR Online•Politics•27m ago

Reader Briefing

Energy Minister Akanat Promphan explains the necessity of an emergency loan to manage the energy crisis and transition Thailand toward renewable energy.

•Akanat Promphan clarified the emergency loan decree to the House of Representatives on August 26, 2026.
•The government retrieved 17,442 million baht from refinery excess profits to reduce pump prices.
•The government aims to reduce fuel import reliance, which currently exceeds 90% for oil and 30% for LNG.
•Proposed investments include a solar cell program allowing citizens to own power plants through a state-installed, lease-to-own model.

Overview

•On August 26, 2026, Akanat Promphan provided clarification to the House of Representatives regarding an emergency loan decree.
•Akanat Promphan stated that conflict in the Middle East caused crude oil prices to fluctuate, rising from 60-70 USD to over 100 USD per barrel.
•Akanat Promphan utilized the Emergency Decree on the Prevention and Solution of Oil Shortages to reclaim 17,442 million baht from refinery excess profits to lower fuel prices.
•Akanat Promphan noted that Thailand imports more than 90% of its oil and approximately 30% of its LNG for electricity production.
•The government reduced electricity costs for the first 200 units to 3 baht per unit for all households.
•The Ministry of Energy plans to issue a 25-year Power Development Plan (PDP) to transition from fossil fuels to renewable energy.
•Akanat Promphan asserted that the loan will be used to invest in citizen-owned solar power plants rather than benefiting large capital groups.
•Akanat Promphan pledged that every baht of the loan will be used with integrity to reduce dependence on imported fuels.

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Key Entities

Person

Akanat Promphan(เอกนัฏ พร้อมพันธุ์)ℹ️

Minister of Energy who clarified the emergency loan decree to the House of Representatives.

Organization

Ministry of Energy(กระทรวงพลังงาน)ℹ️

The government body responsible for preparing the 25-year Power Development Plan (PDP).

House of Representatives(สภาผู้แทนราษฎร)ℹ️

The legislative body where Akanat Promphan provided clarification on the emergency loan decree.

Ministry of Finance(กระทรวงการคลัง)ℹ️

The ministry authorized to borrow money under the emergency decree to solve energy crisis impacts.

Law

Emergency Decree Authorizing the Ministry of Finance to Borrow Money to Solve Impacts of the Energy Crisis and Create National Energy Transition 2026(พระราชกำหนด (พ.ร.ก.)ให้อำนาจกระทรวงการคลังกู้เงิน เพื่อแก้ปัญหาผลกระทบจากวิกฤตพลังงานและสร้างการเปลี่ยนผ่านด้านพลังงานของประเทศ พ.ศ. 2569)

A decree enabling the government to borrow funds for energy crisis mitigation and transition.

Emergency Decree on the Prevention and Solution of Oil Shortages(พ.ร.ก.ป้องกันและแก้ไขภาวะการขาดแคลนน้ำมัน)

The law used to request information from refineries to check for excess profits.

Place

Parliament Building(อาคารรัฐสภา)ℹ️

The location where the clarification to the House of Representatives took place.

Middle East(ตะวันออกกลาง)ℹ️

The region where conflicts caused energy cost volatility.

Policy

Power Development Plan (PDP)(แผนพัฒนากำลังผลิตไฟฟ้า หรือ PDP)

A 25-year framework to transition from fossil fuels to renewable energy.