Ban on refined oil exports to continue

Thailand's energy authorities will continue to prohibit refined oil exports, prioritizing national energy security amid persistent conflicts in the Middle East. The decision comes despite pressure from domestic refineries struggling with overflowing storage facilities.

An Energy Ministry official, who spoke anonymously, cited the volatile situation involving Iran, Israel, and the U.S. as the primary reason for maintaining the ban. "We will consider easing restrictions on refined oil exports cautiously and prudently because we prioritise energy supply security," the official stated. The government will only lift the restrictions once it is confident that global energy transportation will not be disrupted by international tensions.

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We will consider easing restrictions on refined oil exports cautiously and prudently because we prioritise energy supply security.

The export ban, initially imposed in late March, allowed only limited shipments to Laos and Myanmar. In May, an exemption was granted for A1 jet fuel exports to the Philippines, Singapore, and Vietnam, as these shipments were deemed unlikely to affect domestic consumption. This exemption has helped reduce stockpiles, which officials say currently stand at approximately 300 million liters.

Despite these measures, the storage of vast quantities of refined oil has strained the financial health of refineries. Some operators have been forced to cut production, with PTT Global Chemical Plc and Bangchak Sriracha Plc reducing their refining capacity by 15%. Meanwhile, domestic diesel consumption has climbed to over 77 million liters per day, a significant increase from the usual 70–73 million liters, even with prices elevated. On June 11, diesel cost 40.8 baht per liter, a 33% rise from pre-conflict levels.

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This demonstrates that despite high oil prices, consumption continues to grow, and this growth has been happening for several consecutive days.