By Mucahithan Avcioglu
ISTANBUL (AA) - Retail fuel prices in Thailand jumped 18% on Thursday after the government sharply cut subsidies that had been used to cap costs amid rising global oil prices linked to the Mideast war, the Bangkok Post reported Thursday.
Diesel prices rose 18% with smaller increases for other fuel types. At state petroleum PTT stations, high-speed diesel climbed to 38.94 Thai baht ($1.19) per liter, while gasohol 91 rose to $1.24 and gasohol 95 to $1.25.
The government said it could no longer afford to maintain broad fuel price caps and would instead provide targeted support to vulnerable groups such as low-income households, farmers, and truck drivers.
Finance Minister Ekniti Nitithanprapas said the price controls had distorted the market, encouraged hoarding, and created unnecessary fiscal costs.
Authorities cut subsidies across several fuel types, while support for gasohol E85 was removed entirely.
Officials said fuel consumption surged after the outbreak of the war as higher prices triggered stockpiling, contributing to shortages at hundreds of gas stations despite government assurances that national reserves remain sufficient.
The Oil Fuel Fund spent $610 million in three weeks to keep prices capped, but officials concluded that continuing the policy through additional borrowing was no longer sustainable.