Thailand accuses oil traders of excessive profits amid nationwide fuel shortage
Thailand's prime minister accuses oil traders of stockpiling and smuggling fuel, practices he says have cost the government 50 billion baht ($1.21 billion), as prices hit record highs across the region.
| Sectors | Oil, Fuels |
|---|---|
| Themes | Policy & Geopolitics, Energy Security |
| Countries | Thailand, Vietnam |
Thai Prime Minister Anutin Charnvirakul publicly denounced oil traders on Friday for stockpiling and smuggling fuel, practices he described as a "major factor" behind the nationwide fuel shortages recorded over recent weeks. Southeast Asian countries have been hit hard by supply difficulties caused by the war in the Middle East, a conflict that has disrupted key maritime routes such as the Bab el-Mandeb Strait, a strategic corridor for oil. Evidence of speculation has been found among both large and medium-sized oil traders, on land and at sea.
A 50-billion-baht shortfall for the government
"Authorities discovered stockpiling of fuel and cases of smuggling to sell it to neighboring countries," Anutin Charnvirakul said. These practices have cost the government 50 billion baht (1.21 billion euros), according to the prime minister. Maritime shipments were deliberately delayed so that fuel would not arrive on time, allowing sellers to wait for retail price increases. Other consignments, ostensibly destined for export to neighboring countries, were diverted for stockpiling instead.
Justice Minister Rutthaphon Naowarat estimates that more than 57 million liters of fuel transported by sea were reported missing in southern Thailand. "These actions amount to profiteering from rising oil prices during the global energy crisis," Anutin Charnvirakul added. The alleged practices involve actors of both large and medium scale, according to information released by the government.
Record prices at the pump in Thailand
Fuel prices in Thailand have reached record levels. Unleaded gasoline stands at 57.51 baht (1.52 euros) per liter, while diesel is priced at 47.74 baht (1.26 euros). These increases are part of a broader regional dynamic, with supply disruptions affecting all of Southeast Asia. The situation echoes other regional supply chain pressures, such as Mexico's search for private intermediaries to supply Cuba with oil.
In Vietnam, diesel reached 46,200 dong (1.56 euros) per liter this week, up more than 140% since the end of February. In response to the surge, Hanoi had already drawn on an emergency fuel price stabilization fund the previous week. The Vietnamese government also removed environmental taxes to ease pressure on consumers.
A region under geopolitical and commercial strain
All of Southeast Asia is feeling the effects of supply difficulties triggered by the war in the Middle East. Illegal stockpiling and smuggling identified in Thailand are compounding tensions already fueled by external geopolitical factors. Anutin Charnvirakul did not specify what enforcement measures would be taken against the traders identified by authorities.
