Bangkok: Amidst rising tensions following the United States' recent attack on Iranian nuclear facilities, Deputy Prime Minister and Energy Minister Pirapan Salirathavibhaga has convened an urgent meeting to strategize Thailand's energy procurement and reserves. Iran's parliament has voted to close the Strait of Hormuz, a critical passageway for international oil transport, threatening to disrupt approximately 20% of global oil supply.
According to Thai News Agency, Mr. Pirapan emphasized the critical nature of the situation, revealing that Thailand relies heavily on crude oil imports, with 90% of its supply coming from abroad, predominantly from the Middle East through the Strait of Hormuz. The Ministry of Energy is developing scenarios to address the escalating conflict between Israel and Iran, including potential prolonged closure of the strait. Measures are being devised to manage domestic oil reserves and stabilize retail oil prices through the Oil Fund mechanism.
Currently, Dubai crude oil prices hover around 72 US dollars, with a rising trend. As of June 23, 2025, Thailand has crude oil reserves sufficient for 22 days, oil in transit for 20 days, and finished oil for 18 days, totaling 60 days of supply. If conditions worsen, strategic management of reserves will be prioritized to ensure national stability and confidence.
The Oil Fund, vital in cushioning domestic consumers from global price surges, is currently in deficit by approximately 35,408 million baht. This includes a shortfall of 44,403 million baht in the cooking gas account and 8,995 million baht in the oil account. Recently, the fund's collection rates for gasoline and diesel were reduced four times to alleviate consumer expenses.
Furthermore, the Electricity Generating Authority of Thailand (EGAT) is tasked with sourcing alternative, cost-effective liquefied natural gas (LNG) supplies to mitigate impacts on electricity pricing, given LNG's dependency on passage through the Strait of Hormuz.
Mr. Pirapan assured that comprehensive plans are in place to secure alternative oil and LNG sources, with a focus on minimizing energy costs. He highlighted the Oil Fund's role in maintaining price stability and suggested potential excise tax reductions if global crude prices rise. Public cooperation in energy conservation is encouraged to mitigate import costs and support national energy security.