New regulations pose risks for Thai refiners

Attempts to control domestic fuel prices could threaten supply

A new energy law proposed by Thailand to overhaul how the country prices diesel and gasoline at the pump could allow the Association of Southeast Nations’ (ASEAN’s) biggest oil refiner to stabilise domestic fuel costs that have been buffeted by the Russia-Ukraine war. But the move may also potentially introduce more state intervention in the downstream sector while weakening fuel supply. Among the articles in the law under consideration by Thai Energy Minister and Deputy Prime Minister Pirapan Salirathavibhaga are changes to fuel oil trade regulations that would revamp the country’s approach to pricing and distribution of fuel. Diesel is the main fuel used in transport, logistics, agricultur