Energy Ministry: Refinery profits cut oil prices immediately

Thairath•Politics•23d ago

Reader Briefing

Thailand's Ministry of Energy announced an unprecedented price reduction in gasoline and diesel, driven by direct government intervention to cap retail prices and utilize excess refinery profits, not solely the oil fund.

•The Ministry of Energy clarified that a price cut of approximately 2.5 baht per liter for gasoline and diesel was implemented by directly capping retail prices.
•Minister of Energy Ekanat has used legal authority to set a price ceiling for gasoline and diesel at 35 baht per liter.
•Excess profits from oil refineries, totaling around 1.7 billion baht for this round, were recovered to subsidize the price reduction.
•This move is distinct from previous price adjustments solely relying on the oil fund, representing a new policy approach.

Overview

•On July 8, 2026, the Ministry of Energy announced a significant reduction in oil prices.
•Spokesperson Pongpol Yodmeejaroen stated that Minister Ekanat utilized legal authority to set retail price caps.
•Minister Ekanat empowered the government to set maximum retail prices for gasoline and diesel at 35 baht per liter.
•Approximately 1,700 million Baht in excess profits from refineries were recovered, adding to a previous 10,000 million Baht.
•The price cap and profit recovery were implemented to protect the public from market prices not reflecting true costs and to reduce the cost of living.
•Consumers will see immediate price reductions of approximately 2.51 baht/liter for gasoline/gasohol and 2.56 baht/liter for diesel.
•This policy marks the first time the government has directly set price ceilings for oil in Thailand's history.
•The Ministry of Energy acknowledged initial communication challenges but emphasized that the Royal Gazette announcement would clarify the legal basis and scope of the price reduction.

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Source: Thairath (Original)

Key Quotes

Nattaphon Rangsitron

"Full details will be officially announced in the Royal Gazette today."

โดยรายละเอียดทั้งหมดจะมีการประกาศในราชกิจจานุเบกษาอย่างเป็นทางการในวันนี้

Nattaphon Rangsitron

"Simply put, when market prices do not reflect true costs, the state can set price caps to protect the public."

พูดง่าย ๆ คือ เมื่อราคาตลาดไม่สะท้อนต้นทุนที่แท้จริง รัฐสามารถเข้าไปกำหนดกรอบราคาเพื่อคุ้มครองประชาชนได้

Nattaphon Rangsitron

"The Ministry of Energy admits that initial communication through several meetings, including the Oil Fund Committee and the Energy Policy Committee, may have caused misunderstanding."

กระทรวงพลังงานน้อมรับว่า การสื่อสารในวันแรกผ่านหลายคณะประชุม ทั้ง กบง. และ กบน. อาจทำให้คนไม่เข้าใจทุกมิติ

Key Entities

Organization

Ministry of Energy(กระทรวงพลังงาน)ℹ️

The government body responsible for energy policy and the announcement of oil price reductions.

Oil Fund Committee(กบง.)

Committee involved in decisions related to the oil fund, whose actions were distinguished from the current price reduction strategy.

Energy Policy Committee(กบน.)

Committee involved in energy policy, whose meetings were part of the communication process regarding the oil price reduction.

Person

Korn(กรณ์)

Individual whose information was clarified by the Ministry of Energy spokesperson.

Ekanat(เอกนัฏ)

Minister of Energy who used legal authority to set price caps and recover refinery profits.

Pongpol Yodmeejaroen(นายพงศ์พล ยอดเมืองเจริญ)

Spokesperson for the Ministry of Energy who explained the background of the oil price reduction.

Minister Ekanat(รมว.เอกนัฏ)

Minister of Energy who exercised the authority to set retail oil prices and recover excess refinery profits.

Law

B.E. 1973 Decree(พ.ร.ก. ปี 1973)

Emergency Decree from 1973 used by the Prime Minister to set oil price caps. (Note: 'ปี 1973' translates to B.E. 1973 or 1973 CE).