Fuel price rises start to bite

Ripple effect goes nationwide amid panic-buying, stockpiling, write Assawin Pakkawan, Prasit Tangprasert and Panumet Tanraksa

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Fears of a prolonged Middle East conflict disrupting global energy supplies are rippling across Thailand, triggering price anxieties, panic buying and warnings of logistical strain.

Tensions involving the United States, Israel and Iran, particularly the risk of disruption through the Strait of Hormuz, have heightened concerns over oil availability and costs. While Thailand maintains strategic reserves, regional leaders and businesses warn that extended conflict could test supply chains and inflate prices nationwide.

Chaiyong Maneerungsakul, a senator for Songkhla and spokesman for the Senate Committee on Military and State Security, outlined the potential impact on southern energy supplies.

A former southern oil wholesaler, he said Thailand holds around 60 days of oil reserves, but southern depots, in Surat Thani and Songkhla, could sustain the region for only about 15 days if distribution is curtailed. He warned prolonged war could prompt rationing. Petrol stations that typically receive 60,000 litres per delivery might see allocations halved to 30,000 litres.

Sales could be restricted to direct vehicle refuelling, banning bulk purchases into drums or storage tanks. Opening hours might also be reduced from 6am-10pm to as early as 6pm closures.

"For the public, there will not be a shortage of oil, but there may be an impact on price," he said. "Those affected will be oil jobbers and wholesale traders, because major oil companies will allocate supply to their own branded stations first."

Sen Chaiyong said constrained supply could revive the illicit fuel trade. "Operators need production lines to continue. It will be another big wave of non-system oil," he said, adding smuggled fuel prices would also rise.