The Cabinet has approved a proposal authorising the Ministry of Energy to negotiate with oil refineries to help reduce domestic fuel prices and ease the burden on the public.
The decision was made during a special Cabinet meeting chaired by Prime Minister Anutin Charnvirakul, following reports that refinery margins have risen above normal levels. The government aims to seek cooperation from refineries to return excess profits for use in supporting fuel price relief measures.
The calculation of refinery margins will be based on actual costs, including existing oil stock, and assessed using monthly averages rather than daily price fluctuations. The approach will rely on negotiation rather than compulsory enforcement, with discussions expected to determine practical compensation mechanisms.
Possible options include returning excess margins in the form of financial contributions to the Oil Fuel Fund or providing oil stock to support domestic supply. Authorities are also considering long-term measures, including potential use of legal tools under the Emergency Decree on Remedying and Preventing Fuel Shortages of 1973, if necessary.
The Energy Minister is scheduled to meet refinery operators to begin discussions, before presenting the matter to the Energy Policy Administration Committee. The government stated that the objective is to stabilise fuel prices while ensuring supply security and minimising impacts on consumers during a period of heightened global energy volatility.
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