Thailand Announces Measures to Mitigate Rising Fuel Costs
Thailand’s caretaker cabinet on Thursday, March 26, 2026, approved a series of measures designed to alleviate the financial burden of increasing fuel prices on both households and businesses. The initiatives range from increased welfare card allowances to soft loans for slight and medium-sized enterprises (SMEs).
Fuel Price Increases Prompt Government Response
The measures were announced following a 14-22% increase in retail fuel prices, prompting the government to act swiftly to cushion the impact on vulnerable populations and key economic sectors. Lavaron Sangsnit, permanent secretary for the Ministry of Finance, detailed the plans after a special cabinet session.
Key Measures to Address Fuel Costs
- Excise Tax Review: The Ministry of Finance will review options for lowering excise taxes on fuel, considering both the rate and duration of any potential reduction. Approval from the Election Commission is required before implementation.
- Welfare Card Top-Up: Over 13 billion baht will be used to add 100 baht to state welfare cards for one month, increasing the monthly allowance to 400 baht. Spending will be limited to essential consumer goods. The situation will be reassessed after the one-month period.
- Fertilizer Cost Reduction: The cabinet endorsed the “Green Flag” scheme to reduce fertilizer costs for farmers and lessen Thailand’s dependence on imports, particularly from the Middle East.
- Support for Transport Sector: Measures will be implemented to aid truck drivers, bus operators, and motorcycle taxi riders, with the Ministry of Transport overseeing the support.
- Agriculture Support: Farmers will receive assistance through the “Green Flag” program, which subsidizes fertilizer costs and promotes organic and alternative fertilizers. This is coupled with the “Great Soil” program.
- Fisheries Support: Fishermen are encouraged to switch to B20 diesel, which is 5–6 baht cheaper per liter, to reduce operating expenses.
- SME Soft Loans: The Government Savings Bank will provide a 10-billion-baht soft loan facility to support SMEs maintain liquidity.
- Project Deadline Extensions: Construction and industrial projects affected by fuel shortages may receive extended deadlines for completion and inspections.
Financial Assistance and Loan Programs
The government’s response includes direct financial aid through the welfare card top-up and financial support for businesses through soft loans. The 10-billion-baht soft loan facility, administered by the Government Savings Bank, aims to help SMEs navigate the challenges posed by rising fuel costs.
Focus on Agricultural Sector
Recognizing the importance of the agricultural sector, the government is prioritizing fertilizer cost reduction through the “Green Flag” scheme. This initiative aims to reduce reliance on imported fertilizers and promote sustainable farming practices.
Looking Ahead
These measures represent the caretaker government’s immediate response to the escalating fuel prices. The long-term impact and effectiveness of these initiatives will depend on global oil market trends and the policies of the incoming government following the elections.