Amid surging fuel prices in 2026, the Thai government has decided to revive a 53-year-old emergency law — the Fuel Shortage Prevention Act (1973) — to intervene directly in oil pricing at the refinery level.
The move comes as refining margins have risen sharply, reaching approximately 15.99 baht per liter in April 2026, compared to an average of around 6 baht per liter in March. Authorities argue that current fuel prices do not accurately reflect actual costs, placing an excessive burden on consumers.
Under this law, the Prime Minister is granted sweeping powers to act immediately without going through standard procedures. These powers include controlling production, distribution, and transportation of fuel, as well as regulating other energy sectors, restricting consumption, and even implementing fuel rationing in severe situations.
Recently, the National Energy Policy Committee (NEPC) exercised this authority to order all six domestic refineries to cut diesel prices by 2 baht per liter at the refinery level. This is expected to reduce retail diesel prices by approximately 2.14 baht per liter.
As a special emergency law, violations carry severe penalties. Offenders may face up to 10 years in prison, a fine of up to 100,000 baht, or both.
The revival of this law highlights a key difference between past and present energy crises. In 1973, Thailand faced a physical shortage of fuel, whereas in 2026, the issue is high prices despite sufficient supply.
This policy shift marks one of the most significant government interventions in Thailand’s energy market, aimed at easing the cost-of-living burden on the public during a period of volatile energy prices.
Cr. springnews
