Diesel price cap removal explained by ASEAN economics expert

2026-03-26 - 05:30

BANGKOK — 26 March 2026, The phased removal of diesel price caps this month has triggered a sharp rise in fuel costs, with industry and transport sectors expected to bear the heaviest burden, according to an independent economic analyst. Arth Pisalwanich, an expert in international and ASEAN economics, said the government lifted diesel price controls in two stages on 18 March and 25 March, accelerating price increases. Diesel prices stood at 29.94 baht per litre on 27 February, supported by a subsidy of 0.74 baht per litre until 3 March. Subsidies were then increased significantly from 4 March, reaching 26.99 baht per litre by 25 March. Authorities had previously capped diesel at 29.94 baht and 33 baht per litre. The lower cap was removed on 18 March, followed by the higher cap on 25 March. The resulting 6-baht-per-litre increase is expected to affect all users, but particularly diesel-intensive sectors. The transport sector, which accounts for about 62% of diesel consumption, is forecast to see operating costs rise by around 1,200 baht per day. The industrial sector, consuming roughly 12%, is expected to face increases of about 3,000 baht per day. Agriculture, which uses around 10% of diesel supply, is also likely to experience higher costs. The analysis indicates that while all diesel-dependent sectors will face rising expenses, industry and transport will absorb the most significant impact.