Thailand’s state oil stabilization fund is losing more than one billion baht, or about thirty two million dollars, every day as the government works to keep domestic diesel prices artificially low amid rising global energy costs.

Energy officials said the Oil Fuel Fund is currently absorbing the bulk of the price difference between international diesel costs and the capped retail price paid by consumers.

The subsidy is part of a broader policy aimed at protecting households and businesses from sharp increases in fuel costs, particularly as diesel remains a critical energy source for transportation and logistics across the country.

Authorities estimate that the fund’s accumulated losses could reach roughly ten billion baht within days if current market conditions persist.

The escalating deficit highlights the financial strain created by efforts to shield consumers from volatile global energy prices while maintaining economic stability.

Diesel plays a central role in Thailand’s economy, powering freight transport, agricultural machinery and many commercial operations.

Because a large share of goods in the country are moved by truck, sudden increases in diesel prices can quickly translate into higher logistics costs and rising inflation across the broader economy.

To mitigate those effects, the government has relied on the Oil Fuel Fund, a mechanism designed to stabilize domestic fuel prices by collecting contributions during periods of lower costs and using those funds to subsidize prices when global markets rise.

However, prolonged periods of elevated oil prices have placed the fund under significant pressure.

In previous years, the subsidy program and other energy price controls pushed the fund deep into deficit, forcing authorities to borrow funds and explore reforms to manage the growing financial burden.

Policymakers have periodically adjusted diesel price caps and tax policies in an effort to balance fiscal sustainability with consumer protection.

Officials are now considering additional measures to curb fuel demand and ease pressure on the fund while maintaining affordable energy for the public.

Options under discussion include encouraging more efficient fuel use and gradually adjusting retail prices if global energy markets remain volatile.

The situation illustrates the challenge facing many energy-importing economies as they attempt to balance fiscal stability with the need to protect consumers from sudden price shocks in global oil markets.