Government cuts refinery-gate diesel prices by up to 5 baht per litre in 2026
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The government has used measures to intervene in refinery-gate diesel prices through the Energy Policy Administration Committee to control energy costs and ease the cost-of-living burden on the public. In 2026, the discount rate was adjusted several times: starting at 2 baht per litre between 9 and 23 April 2026, before rising to 5 baht per litre from 24 April to 9 May 2026, then falling to 3 baht per litre between 10 and 19 May 2026, and returning at 1.40 baht per litre from 9 to 23 July 2026, before increasing to 2.40 baht per litre between 24 July and 15 August 2026. Most recently, the government raised the discount to 4.00 baht per litre, effective from 16 September to 31 October 2026, bringing the full-year discount range from 1.40 baht per litre up to 5.00 baht per litre. The measure helps reduce the burden on the Fuel Fund and eases pressure on the cost of living, but it also puts pressure on refining margins and the revenue of refinery operators, since the set price may not reflect Singapore market reference prices, and if continued over the long term it could affect the free-trade structure of the private sector.