Thailand braces for oil price shock

Thai energy officials are intensifying measures to shield the country from a crisis reminiscent of the outbreak of the Russia-Ukraine war in 2022, as mounting tensions between Iran, Israel and the US raise fears of global oil supply disruptions and economic instability.

- YUTHANA PRAIWAN LAMONPHET APISITNIRAN

Authorities are working with power companies to avoid a repeat of the sharp price hikes that followed Russia's invasion of Ukraine, said an energy official who requested anonymity.

In March 2022, global crude oil surged to nearly US$140 a barrel, according to media reports.

The surge in global energy prices forced the government to tap the Oil Fuel Fund to cushion the impact, subsidising domestic oil and liquefied petroleum gas costs.

At the same time, the Electricity Generating Authority of Thailand (Egat) and national oil and gas conglomerate PTT Plc were required to subsidise electricity prices, which had spiked sharply as Thailand's power generation relies heavily on natural gas.