The Oil Fuel Fund Executive Committee has resolved to reduce the fuel fund subsidy rate for diesel B7 by 0.19 baht per litre, from 4.62 baht per litre to 4.43 baht per litre, and for diesel B20 by 0.26 baht per litre, from 8.08 baht per litre to 8.54 baht per litre. As a result, retail diesel prices will rise by 0.75 baht per litre, with diesel B7 climbing to 41.44 baht per litre and diesel B20 to 36.44 baht per litre, effective from September 24 onwards. Pressure comes from Donald Trump, who has signalled that he may consider halting US diesel exports to control domestic fuel prices that have surged to 6.50 US dollars per gallon, or 75% more expensive than the same period last year, and from Russia, which is likely to extend its ban on producers exporting diesel by another month until October 31, 2026, after several refineries have still not returned to normal operations following attacks by Ukraine. Russia has enforced this measure since July 8, 2026, and normally accounts for diesel exports as high as 813,000 barrels per day in 2025. This subsidy reduction will cost the Oil Fuel Fund about 428 million baht per day.
Russia's extended diesel export ban and potential US export halt tighten global diesel/heating oil supply, supporting Heating Oil Futures prices.
