Oil export ban set to end as reserves surge

Jet fuel likely the first to ship

PUBLISHED : 7 May 2026 at 06:57

NEWSPAPER SECTION: Business

WRITER: Yuthana Praiwan

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Authorities are considering lifting a temporary ban on the export of refined oil, citing secure reserves and a growing surplus in storage facilities, according to Sarawut Kaewtathip, director-general of the Department of Energy Business (DOEB).

Six domestic oil refineries are operating with storage facilities filled to nearly half their capacity.

Mr Sarawut warned if the ban remains in place, excess stock could lead to mounting storage costs.

The DOEB is expected to initially allow the export of jet fuel. Although global demand for aviation fuel has slowed due to weaker tourism, many countries still face shortages because of limited refining capacity.

Thailand's oil consumption has been highly volatile since the war in Iran began, he said.

Uncertainty surrounding the conflict has caused dramatic swings in global oil prices, with reports of ceasefires followed by renewed violence and disruptions in the Strait of Hormuz.

Immediately following the onset of the conflict, domestic oil consumption surged, raising concerns about the adequacy of Thailand's reserves. However, consumption quickly dropped when prices spiked, only to rebound again.

This instability prompted the DOEB to proceed cautiously, ensuring the Middle East conflict stabilises before it fully lifts the ban.

The export ban was introduced on March 6 by Prime Minister Anutin Charnvirakul, following public fears of fuel shortages. The order temporarily halted exports of gasoline, gasohol, diesel, jet A-1 aviation fuel and liquefied petroleum gas (LPG).

Exceptions were made for Laos and Myanmar, reflecting Thailand's energy interdependence with its neighbours, particularly its reliance on Lao hydropower.

As of May 5, Thailand's reserves were sufficient to cover 104 days of consumption, including 25 days of legally mandated reserves, 23 days of commercial reserves, 39 days of oil in transit, and 17 days of confirmed purchases from traders, according to the Energy Ministry.

From May 1-3, the country produced 74.1 million litres of diesel daily while selling 55.6 million litres domestically per day.

Despite the surplus, financial pressures remain. The state Oil Fuel Fund, which subsidises oil and LPG prices, reported a deficit of 63.5 billion baht as of May 5. Daily diesel subsidies alone amounted to 78.1 million baht.

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- KEYWORDS

- Thailand oil export ban

- Doeb

- Jet fuel exports

- Thailand energy reserves

- Oil fuel fund

- Domestic oil refineries

- Anutin charnvirakul