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Businesses Shocked by Energy Costs, Forced to Raise Prices

Businesses Shocked by Energy Costs, Forced to Raise Prices

Thansettakij•Economy•44d ago

Reader Briefing

Rising energy costs due to Middle East tensions are severely impacting Thai businesses across various sectors, leading to price hikes and calls for government intervention.

  • •Businesses in the transport, construction, food service, and tourism sectors are facing significant cost increases due to escalating energy prices.
  • •The transport sector has announced a phased increase in shipping rates of 10-25%, citing prolonged Middle East conflict impacting global oil prices.
  • •Construction firms are hesitant to sign new contracts unless escalation factors (ค่า K) are adjusted to reflect rising costs, with many awaiting overdue payments.
  • •Tourism operators are proposing measures like fuel price stabilization for their sector and tax relief to mitigate the impact of high energy costs.

Overview

  • •Ongoing tensions in the Middle East are causing widespread disruption to the global economy, particularly through significantly rising energy prices.
  • •The persistent and uncertain conflict in the Middle East has led to a substantial increase in global oil prices, creating supply shortages and driving up costs.
  • •The transportation sector is severely affected, with the President of the Land Transport Federation of Thailand stating the war began on February 28, 2026, and has lasted over 4 weeks.
  • •The Land Transport Federation of Thailand has decided to implement a phased increase in freight charges ranging from 10% to 25%, depending on the transport type.
  • •Construction companies are facing widespread impacts from rising energy costs, with many unwilling to sign contracts if they do not foresee adequate returns, particularly concerning the escalation factor (ค่า K).
  • •The President of the Restaurant Business Club and honorary advisor to the Thai Hotels Association highlights the 'Kon La Kreung Plus Phase 2' project, expected to start in April, as crucial for supporting consumer spending and small businesses.
  • •The President of the SME Confederation of Thailand notes that GSB's Soft Loan is timely, as many entrepreneurs need working capital to sustain their businesses amidst economic volatility.
  • •The tourism industry is being significantly affected by rising energy prices, prompting the Phuket Tourist Business Association to propose urgent and structural measures to alleviate the impact.

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Key Quotes

Tongyoo Khonsan
"The war situation between the USA, Israel, and Iran began on the morning of February 28, 2026, and shows no signs of ending soon."
จากสถานการณ์สงครามระหว่าง สหรัฐอเมริกา อิสราเอล และอิหร่าน ได้เริ่มตั้งแต่เช้าวันที่ 28 กุมภาพันธ์ 2026 ถึงปัจจุบัน เป็นเวลากว่า 4 สัปดาห์ และไม่มีแนวโน้มที่จะยุติลงในเวลาอันใกล้
Kritda Chan-jumrasaeng
"Construction contractors are widely affected by energy costs, with many unwilling to sign contracts as they believe the gains do not outweigh the losses."
ผู้รับเหมาก่อสร้างได้รับผลกระทบเป็นวงกว้างจากต้นทุนพลังงาน และปัจจุบันมีผู้ประกอบการหลายรายไม่ยินยอมลงนามในสัญญาเพราะมองว่าได้ไม่คุ้มเสีย
Sarthep Rodpojranarat
"The 'Kon La Kreung Plus Phase 2' project, expected to start in April, is a crucial measure to sustain purchasing power and support small businesses."
โครงการ "คนละครึ่งพลัสเฟส 2" ที่คาดว่าจะเริ่มในเดือนเมษายนนี้ ถือเป็นมาตรการสำคัญในการประคองกำลังซื้อและช่วยพยุงผู้ประกอบการรายย่อย
Saengchai Teerakulwanich
"The GSB Soft Loan this round is timely, as many businesses urgently need working capital."
Soft Loan ของธนาคารออมสินในรอบนี้ ถือว่ามาตรงจังหวะ เพราะเป็นช่วงที่ผู้ประกอบการจำนวนมากกำลังต้องการเงินทุนหมุนเวียน
Thanes Tantipiriyakij
"The current rise in energy prices significantly impacts the cost structure of the tourism industry."
การปรับตัวสูงขึ้นของราคาพลังงานในปัจจุบันกำลังกระทบต่อโครงสร้างต้นทุนของอุตสาหกรรมท่องเที่ยวอย่างมีนัยสำคัญ

Key Entities

Organization

Land Transport Federation of Thailand(สหพันธ์การขนส่งทางบกแห่งประเทศไทย)
An organization representing the land transport sector, which has announced plans to increase shipping rates due to rising energy costs.
Thai Construction Industry Association(สมาคมอุตสาหกรรมก่อสร้างไทย ในพระบรมราชูปถัมภ์)
An association representing the construction sector, which is experiencing significant impacts from rising energy costs and is seeking adjustments to the escalation factor (ค่า K).
Restaurant Business Club(ชมรมผู้ประกอบธุรกิจร้านอาหาร)
An organization representing restaurant businesses, which is seeking government support to mitigate the impact of rising costs on their operations.
Thai Hotels Association(สมาคมโฮสเทลประเทศไทย)
An association involved in the hospitality sector, whose honorary advisor has commented on government measures to support businesses and consumers.
SME Confederation of Thailand(สมาพันธ์เอสเอ็มอีไทย)
An organization representing Small and Medium-sized Enterprises (SMEs) in Thailand, which commented on the timeliness of Soft Loans and suggested improvements to access.
Government Savings Bank (GSB)(ธนาคารออมสิน)ℹ️
A financial institution offering Soft Loans, which are considered timely by SMEs in Thailand to manage working capital needs.
Phuket Tourist Business Association(สมาคมธุรกิจการท่องเที่ยวจังหวัดภูเก็ต)
An association advocating for the tourism industry in Phuket, which has proposed a set of urgent and structural measures to address the impact of rising energy prices.
Ministry of Energy(กระทรวงพลังงาน)
A government ministry that has received concerns regarding energy pricing and related issues from the transport sector.
Ministry of Transport(กระทรวงคมนาคม)
A government ministry that has received concerns regarding energy pricing and related issues from the transport sector.
Office of Small and Medium Enterprises Promotion (OSMEP)(สำนักงานส่งเสริมวิสาหกิจขนาดกลางและขนาดย่อม (สสว.))
A government agency expected to collaborate with other bodies to enhance the competitiveness of SMEs.
Department of Business Development(กรมพัฒนาธุรกิจการค้า)
A government department that is expected to collaborate on initiatives to improve SME competitiveness.
Department of Industrial Promotion(กรมส่งเสริมอุตสาหกรรม)
A government department that is expected to collaborate on initiatives to improve SME competitiveness.

Person

Tongyoo Khonsan(นายทองอยู่ คงขันธ์)
President of the Land Transport Federation of Thailand, who commented on the impact of Middle East tensions on energy prices and announced freight rate increases.
Kritda Chan-jumrasaeng(นายกฤษดา จันทร์จำรัสแสง)
The Deputy President of the Thai Construction Industry Association, who commented on the difficulties faced by construction contractors due to rising energy costs.
Sarthep Rodpojranarat(นายสรเทพ โรจน์พจนารัช)
President of the Restaurant Business Club and honorary advisor to the Thai Hotels Association, who emphasized the importance of the 'Kon La Kreung Plus Phase 2' project.
Saengchai Teerakulwanich(นายแสงชัย ธีรกุลวาณิช)
The President of the SME Confederation of Thailand, who highlighted the importance of GSB's Soft Loan for businesses needing working capital.
Thanes Tantipiriyakij(นายธเนศ ตันติพิริยะกิจ)
President of the Phuket Tourist Business Association, who stated that rising energy prices significantly impact the tourism industry's cost structure.

Place

United States of America(สหรัฐอเมริกา)ℹ️
A nation involved in the conflict mentioned as a contributing factor to rising energy prices.
Israel(อิสราเอล)ℹ️
A nation involved in the conflict mentioned as a contributing factor to rising energy prices.
Iran(อิหร่าน)ℹ️
A nation involved in the conflict mentioned as a contributing factor to rising energy prices.

Law

"Kon La Kreung Plus Phase 2" project(โครงการ "คนละครึ่งพลัสเฟส 2")
A government stimulus project expected to start in April, aimed at supporting consumer spending and small businesses during a period of rising costs.
Oil Fund(กองทุนน้ำมัน)
A fund whose mechanisms are proposed to be used to stabilize diesel prices for the tourism sector.
Tourism Fuel Rate
A proposed special fuel pricing mechanism for tourism transport operators, such as hotel shuttles, tour buses, and tourist boats.
Energy Tax Credit
A proposed tax measure allowing businesses to directly deduct electricity and fuel expenses from their taxes.
"Kon La Kreung Plus Tourism" project(โครงการ "คนละครึ่งพลัสท่องเที่ยว")
A proposed extension of the 'Kon La Kreung' program to include accommodation, travel, and tourism activities to stimulate spending.
Jet Fuel
A type of fuel for which a temporary reduction in excise tax is proposed to help airlines mitigate rising costs.
Route Incentive Package
A package proposed to encourage airlines to establish or maintain long-haul routes to Thailand.
Load Factor Support
A risk-sharing concept proposed to incentivize airlines to open or maintain new or strategic routes during periods of high costs and low demand.
"Solar for Tourism" project(โครงการ "Solar for Tourism")
A proposed project for solar rooftop installation in hotels and tourism businesses, with government co-investment and tax benefits to reduce long-term energy costs.
"Green Transport Corridor"
A concept for promoting electric vehicles and infrastructure in key tourist areas like Phuket to reduce long-term energy costs in transportation.
Tourism Energy Stabilization Fund(กองทุนพยุงต้นทุนพลังงานภาคท่องเที่ยว)
A proposed fund to help manage energy price volatility and provide targeted assistance to tourism operators, especially vulnerable SMEs.