"Ekanat" Prepares to Convene Second Energy Policy Committee Meeting to Consider Refinery Price Reduction

Today (April 21, 2026) at 8:25 AM, at Government House, Mr. Ekanat Promphan, Minister of Energy, gave an interview before the Cabinet meeting at Command Building 1, Government House, regarding the approach to resolving the oil price crisis. He stated that the Ministry of Energy is preparing to convene the second meeting of the Energy Policy Administration Committee (EPAC) on Thursday morning, April 23, at 9:00 AM, to consider reducing the refinery price from the current 2-baht-per-liter surcharge. The goal is to quickly publish the decision in the Royal Gazette on the same day, before partially reducing retail prices at gas stations on Friday and using the remainder to compensate for losses in the Fuel Fund.

Regarding the possibility of further oil price reductions, he stated that it does not depend on private sector acceptance but is assessed based on the actual situation, as the global market is currently in an abnormal state. The refinery price, which is based on the Singapore market, has resulted in prices being higher than actual costs due to abnormally high refining margins. Previously averaging 2-3 baht per liter, it increased to approximately 15 baht per liter between April 1 and 15.

The government has given the private sector the opportunity to explain its true costs, including crude oil prices, insurance, and transportation costs, or the increased “war premium,” to be used in determining an appropriate rate. The government emphasizes that it will not allow businesses to incur losses, but at the same time, it will not allow excessive profits during the crisis. It must also consider the burden on the Fuel Fund, which must provide subsidies to prevent pump prices from negatively impacting the public and the overall economy.

Regarding the next price reduction, it is expected to remain at around 2 baht per liter, based on March data. However, the current situation is considered abnormal due to the enforcement of the Emergency Decree on Remedy and Prevention of Fuel Shortage and the oil export ban, forcing the use of domestically produced oil. This necessitates the committee overseeing prices to ensure they are appropriate.

Previously, the government reduced oil prices by 2 baht in March after a total increase of approximately 7 baht. However, in the first half of April, the average refining margin increased to 15 baht per liter, indicating a likelihood of further reductions. Two main mechanisms will be used: utilizing the Fuel Fund to subsidize pump prices and the reduction in ex-refinery prices—a new mechanism that doesn't burden the fund but instead reduces refineries' profits.

Since before the Songkran festival, gas station prices have been reduced four times: the first time by 2 baht 14 satang per liter, the second time by 4 baht per liter, the third time by 1 baht 50 satang per liter, and the fourth time by 1 baht 20 satang per liter. This has resulted in a total reduction of 8 baht 84 satang per liter for B7 and B20 diesel fuels. This is a result of both monitoring global market conditions and using the refinery price adjustment mechanism appropriately.