"Ekanat” prepares to summon refineries to remit excess profits to the oil fund immediately

Today (April 6, 2026) at 10:06 PM at the Santi Maitri Building, Government House, Mr. Ekanat Phromphan, Minister of Energy, stated that the meeting of the Committee on the Appropriateness of Fuel Price Cost Determination (CTRP) reported to the Cabinet meeting, and the Cabinet resolved that he, as Minister of Energy, should proceed with the matter. The CTRP presented several approaches, including summoning refineries or utilizing his authority as the Energy Policy Administration Committee. He will convene a meeting immediately tomorrow (April 7) at 1:00 PM.

When asked if the proposed approach would lead to a price reduction, Mr. Ekanat replied that there are two parts: the increase due to market prices and the increase due to the current situation where the oil fund is bearing the burden. He emphasized the need for clarity on this aspect, as the burden is being placed on lowering oil prices for the public, not on absorbing the refineries' profits. Currently, our system sets prices at the refinery gate. Before the pricing system is referenced to the Singapore market, we observed that the current situation is volatile and unpredictable. The price of refined oil in Singapore has increased abnormally, exceeding the increase in crude oil prices. This has led to higher refining margins, as the Singapore reference price includes both crude oil costs and refining margins, causing the figures to surge. I understand that the CTRP discussed this and confirmed that the increases were indeed abnormal.

Mr. Ekanat further stated that in March, refineries will claim that it's not just the oil price that's increased, but also that crude oil has a premium, leading to higher insurance and transportation costs. Today, at the beginning of April, we have already requested cost estimates from all refineries. We need to examine whether, after deductions, the profits generated from refining margins are abnormally high. If they are, there are two options: 1. Return the excess profits or benefits in some form. He emphasized that there are ways to do this, not just through donations. 2. The Energy Policy Administration Committee can also use its authority under the Emergency Decree to suppress prices at the refineries. At least there are two methods for this now. Tomorrow, I will go to the Ministry and proceed according to today's Cabinet resolution by summoning the refineries for discussions. In the afternoon, I will immediately convene a meeting of the Energy Policy Administration Committee (EPAC).

Mr. Ekanat added that regarding the refining margin ceiling, the Energy Policy and Planning Office (EPPO) currently uses the refining margin under normal circumstances. Today's situation is abnormal, causing prices to rise, partly due to the premium. The refining margin was between 2 and 3 baht for the past 4-5 years. However, in March 2026, the refining margin rose to 7 baht, and in April, it increased to 16-17 baht in just a few days. We will review all the actual figures on April 7, 2026. Thailand needs to stop using "imaginary" or "personalized" figures to set a ceiling on refining margins.

When asked whether a ceiling for refining margins should be set, Mr. Ekanat stated that they need to review the figures. Currently, the figures from the Energy Policy and Planning Office (EPPO) represent refining margins under normal circumstances. When the situation is abnormal, the margin increases due to premium raw materials or higher insurance costs. We may allow some of these costs to be offset. However, the increase is abnormal and needs to be recovered.

When asked further about the specific figures indicating an abnormal increase, Mr. Ekanat replied that he would like to use those figures as a reference. He stated that the refining margin, under normal circumstances, is around 2 baht, a level seen over the past 4-5 years, typically between 2 and 3 baht. However, in March, it averaged 7 baht, and in April alone, within just 6 days, it surged to 16-17 baht, which is considered abnormal.

When asked if oil prices would rise again tonight, Mr. Ekanat replied that it was the wrong question. He explained that people tend to focus only on crude oil prices. The real problem today is that the price at the refinery gate isn't based on crude oil prices but rather on the price of refined oil in Singapore. This is the problematic figure. Another issue is that while crude oil prices have increased from approximately 70 dollars to 100 dollars, the price of refined oil, such as diesel, has increased from over 100 dollars to over 300 dollars—a very significant increase.

Mr. Ekanat emphasized that Thailand's refineries don't buy refined oil; they buy crude oil to refine. In this situation, refineries must cooperate, not exploit the volatile situation where refined oil is scarce. With only 6 domestic refineries, they shouldn't force Thais to use expensive oil. Or, if oil prices aren't high today, it's because the oil fund is subsidizing it. "This still burdens oil users," Mr. Ekanat added. "Therefore, we should be on a fair standpoint. The fact that refineries are located in Thailand is considered a benefit; during times of crisis, they should help out. I'm giving them a chance, and I confirm that the EPAC definitely has the authority. There's an order from the Prime Minister's Office empowering the EPAC to set refinery prices and various conditions. We can discuss all the figures today. The Prime Minister has used his authority under the Emergency Decree to request all the information, so we should discuss the actual situation."

When asked further whether oil prices would be reduced during the Songkran festival, Mr. Ekanat said, "As I've said before, we need to separate this into two parts: Firstly, market prices are determined due to the ongoing conflict, the end of which is unknown. Secondly, the pricing mechanism in Thailand and whether it's appropriate. We have the authority to set prices. If the mechanism is distorted, such as giving excessive profits to refineries, it will burden the oil fund and the public. We will have to reclaim the funds and reduce refinery and gas station prices, which is something I will implement immediately tomorrow."

Photo : Weeraphat Ratsameerueangrong