Thai Oil Fund Bleeds as Middle East Crisis Threatens Another Oil Shock

Thailand's Oil Fuel Fund is hemorrhaging cash at an alarming rate as the country struggles to cope with the Middle East crisis. The fund, which protects consumers from soaring energy costs, has lost around ฿700 million daily and has a deficit of approximately ฿92 billion.

The government faces a stark dilemma: keep subsidizing diesel and cooking gas or pass more costs to households and businesses. Energy Minister Akanat Promphan is considering another borrowing facility approaching ฿100 billion, with eventual requirements potentially reaching hundreds of billions of baht.

Thailand's reliance on imported energy and the strategic Strait of Hormuz make it particularly vulnerable to global oil price fluctuations. The recent retreat in crude prices has provided some temporary relief, but the underlying problem remains.