Thailand approves emergency 400 billion baht loans to tackle energy crisis

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BANGKOK — 5 May 2026, Thai cabinet has approved an emergency decree authorising the Finance Ministry to borrow 400 billion baht funds to address the impact of the global energy crisis, Prime Minister Anutin Charnvirakul said on Tuesday.

Speaking at Government House, Anutin said the decision followed escalating conflict in the Middle East, which has driven up energy prices and severely affected the global economy. The crisis has spread from energy costs to food prices and the cost of living, creating an urgent situation that cannot be delayed, he said.

“The government’s duty is to prevent Thailand’s economy from slipping into high inflation and a slowdown, or stagflation,” Anutin said, adding that swift action was required.

He said the 400 billion baht loan decree would serve as a special legal mechanism for urgent and unavoidable circumstances, aimed at easing the burden on households, sustaining economic activity and accelerating the country’s energy transition to reduce vulnerability.

Measures under the decree will target key groups in need of immediate support, including low- and middle-income earners, farmers, small and medium-sized enterprises, and sectors directly affected by rising energy costs.

The government plans to pursue two parallel approaches: immediate relief to reduce living costs and production expenses, particularly in agriculture through support for fertilisers and essential inputs; and structural adjustments to transition towards modern energy, reduce reliance on fossil fuels and improve long-term competitiveness.

Anutin said the decree would help Thailand navigate the crisis while laying the foundation for greater economic resilience, insisting that fiscal discipline would be strictly maintained.

“The government is committed to standing alongside the people and will do everything within its capacity to help the country get through this crisis,” he said.