Thailand’s Oil Fuel Fund Targets Debt-Free Status by 2029 Amid Price-Cap Reforms
The fund outlines a path to eliminate its THB 31 billion debt and proposes a 2025-29 fuel-price crisis plan adjusting diesel and LPG price ceilings.
Thailand’s state-run Oil Fuel Fund Office (OFFO) has announced a plan to clear its outstanding loan debt of about THB 31 billion by 2029 — down from THB 105.3 billion incurred during the post-2022 oil-price crisis.
The office currently repays between THB 1.5 billion and THB 2 billion per month.
OFFO’s accounts disclose a THB 13 billion deficit, comprising a THB 27 billion surplus in its oil account and a THB 41 billion shortfall in the liquefied petroleum gas (LPG) account.
The debt-clearance target assumes global oil prices remain relatively stable — with crude at around US$70 per barrel this year and between US$60–70 per barrel in 2026, and LPG at US$548 per ton now and US$460–500 per ton next year.
Ahead of the expiry of its current 2020–24 fuel pricing-crisis framework, OFFO is preparing a fresh 2025–29 “Fuel Price Crisis Management Plan”.
This will revisit domestic ceiling prices for diesel (currently capped at THB 30 per litre) and LPG (THB 423 per 15 kg cylinder).
The plan will be submitted to the Minister of Energy in his role as Fund Executive Committee chair and then forwarded to the National Energy Policy Council before Cabinet approval.
The Minister, emphasising cost-of-living relief, confirmed that subsidies for blend-fuel biofuels will cease on schedule in September 2026 under the Oil Fuel Fund Act.
From then on the Fund will only deploy subsidies during defined fuel-price crises.
OFFO also continues to monitor retail-fuel pricing.
Should global energy markets ease, the Fund is ready to reduce fuel prices for the public ahead of the New Year.
The reform agenda supports Thailand’s broader fiscal and energy-transition goals by curbing the Fund’s subsidy burden while retaining a buffer for volatility.
The upcoming five-year plan therefore seeks to balance price stability, debt elimination and readiness for external shocks.
The office currently repays between THB 1.5 billion and THB 2 billion per month.
OFFO’s accounts disclose a THB 13 billion deficit, comprising a THB 27 billion surplus in its oil account and a THB 41 billion shortfall in the liquefied petroleum gas (LPG) account.
The debt-clearance target assumes global oil prices remain relatively stable — with crude at around US$70 per barrel this year and between US$60–70 per barrel in 2026, and LPG at US$548 per ton now and US$460–500 per ton next year.
Ahead of the expiry of its current 2020–24 fuel pricing-crisis framework, OFFO is preparing a fresh 2025–29 “Fuel Price Crisis Management Plan”.
This will revisit domestic ceiling prices for diesel (currently capped at THB 30 per litre) and LPG (THB 423 per 15 kg cylinder).
The plan will be submitted to the Minister of Energy in his role as Fund Executive Committee chair and then forwarded to the National Energy Policy Council before Cabinet approval.
The Minister, emphasising cost-of-living relief, confirmed that subsidies for blend-fuel biofuels will cease on schedule in September 2026 under the Oil Fuel Fund Act.
From then on the Fund will only deploy subsidies during defined fuel-price crises.
OFFO also continues to monitor retail-fuel pricing.
Should global energy markets ease, the Fund is ready to reduce fuel prices for the public ahead of the New Year.
The reform agenda supports Thailand’s broader fiscal and energy-transition goals by curbing the Fund’s subsidy burden while retaining a buffer for volatility.
The upcoming five-year plan therefore seeks to balance price stability, debt elimination and readiness for external shocks.
