Oil Fuel Fund loss likely to evaporate in H2

The state Oil Fuel Fund’s huge loss of 47.7 billion baht is expected to be wiped out this year thanks to a decrease in global crude oil prices, says an Energy Ministry official.

- YUTHANA PRAIWAN

The fund is a key tool to regulate domestic oil and gas prices, serving as a cushion when oil prices fluctuate and rise, but subsidising oil, notably diesel, and liquefied petroleum gas (LPG) through the fund substantially diminished its liquidity and piled on debt.

The loss is likely to evaporate in the second half of 2025 based on lower global oil prices and additional oil production from Opec and its allies, said the official, who requested anonymity.