Thailand Invokes Emergency Fuel Powers as Shortages and Rising Prices Spread

Ten Years in Prison for Fuel Violations

Thailand's Interior Ministry has activated emergency powers to police fuel supplies and consumer goods prices, warning that violators face up to 10 years in prison and fines of 100,000 baht, approximately $3,900. The nationwide directive comes as fuel shortages, rising transport costs and global supply disruptions put pressure on households and businesses.

Mr Narucha Kosacivilize, director-general of the Department of Provincial Administration, signed the directive mobilizing provincial governors, district chiefs and local officials. Their task is to intensify checks on fuel traders and goods markets, identify hoarding and price manipulation, and take legal action against businesses withholding supplies or delaying services without reasonable cause.

The crackdown operates under the Emergency Decree on the Amendment and Prevention of Fuel Shortage of 1973, a rarely invoked law that gives authorities extraordinary enforcement powers. Storing controlled goods in undeclared locations or delaying fuel sales without a reasonable explanation can bring severe penalties, including imprisonment.

As of March 26, 2026, the response reaches beyond petrol stations. Airlines have raised fares, river transport operators are warning of possible service cuts, food sellers are facing higher meat and delivery costs, and online marketplaces have announced fee increases for April. Thailand is also restricting fuel exports while maintaining exceptions for Laos, Myanmar and products that cannot be sold domestically.

The crisis combines several pressures: disruption to international energy supplies, restrictions imposed by other exporting countries, suspected fuel smuggling and security measures along Thailand's borders. Officials are trying to protect domestic supplies while preventing traders from exploiting shortages. Businesses and consumers, meanwhile, are already paying more to move people, goods and food.

Seven Measures Put Local Officials on Watch

The Interior Ministry's directive sets out seven measures to prevent shortages and contain living costs. Four groups of authorities will share the work: provincial commerce offices will inspect goods and service prices, provincial energy offices will supervise petrol stations, provincial police will enforce the law, and district chiefs will organize inspections in their areas.

The measures cover both the physical availability of fuel and the prices charged to customers. Officials are instructed to watch for unusually high or low prices that could destabilize the market, alongside hidden stocks and unjustified delays in supplying the public.

• Inspect quantities of controlled products and prosecute hoarding, including storage in hidden locations and deliberate withholding of supplies.
• Prevent service providers from refusing or delaying services to the public without reasonable cause.
• Monitor market prices continuously to prevent manipulation to abnormally high or low levels.
• Require district chiefs to deploy officials for close inspections of fuel traders in their jurisdictions.
• Temporarily suspend exports of petrol, gasohol, diesel, aviation fuel and liquefied petroleum gas, with exceptions for exports to Laos and Myanmar and for products that cannot be sold domestically.
• Require fuel traders to display retail prices clearly at points of sale and report every price adjustment to the director-general of the Department of Energy Business.
• Apply penalties of up to 10 years in prison and fines reaching 100,000 baht to violators.

Gasohol is a mixture of gasoline and ethanol. Liquefied petroleum gas, commonly called LPG, is another fuel covered by the export suspension. The exceptions mean the directive does not impose an identical restriction on every shipment leaving Thailand.

The rules also make local administration central to enforcement. District officials will inspect traders directly, while commerce, energy and police authorities bring their respective responsibilities for prices, fuel operations and criminal investigations. Retail price displays and mandatory reporting of adjustments give authorities a way to track changes alongside checks on stored supplies.

A Diesel Seizure on the Myanmar Border

In Tak province, security forces have seized 20,000 liters of diesel and fuel storage equipment from a riverside warehouse in Mae Sot district. Authorities suspected the fuel was intended for illegal export to Myanmar and acted after receiving information from local residents.

The raid uncovered a truck with ten wheels loaded with diesel, along with warehouse storage that included two tanks holding 4,500 liters each. The seizure took place in a province experiencing severe domestic fuel shortages, where petrol stations frequently run dry within hours and long queues obstruct traffic.

Tak Governor Chusak Ruying has ordered strict action against illegal fuel exports along the border. The local shortages make the movement of fuel across the frontier a pressing issue for residents who already face lengthy waits to fill their vehicles.

The Central Investigation Bureau is also increasing inspections in four areas: fuel quality, legal documentation, compliance with pricing rules and possible hoarding. Police Lieutenant General Natthasak Chaowanasai, the bureau's commissioner, confirmed that more than 40,000 liters of diesel are under review for possible stockpiling.

The Consumer Protection Police Division is coordinating with the Ministries of Commerce and Energy, tax authorities and local officials. The Interior Ministry has asked members of the public to report irregularities at petrol stations and retail outlets, including suspected hoarding and unjustified price increases, through district offices or the Damrongdhama Centre hotline.

Border Restrictions Also Target Scam Compounds

Thailand's fuel restrictions are taking place alongside a broader security crackdown on criminal operations in Myanmar and Cambodia. Scam centers along the borders have relied on Thai infrastructure to run global fraud operations worth tens of billions of dollars annually.

Since February 5, Thai authorities have cut electricity, internet and fuel supplies to five locations across the Myanmar border. The measures specifically target the lawless enclaves of Myawaddy and Shwe Kokko, where criminal syndicates run by Chinese operators maintain extensive compounds using forced labor.

These facilities are associated with so-called pig butchering scams. Criminals build relationships with victims online, sometimes over months, before persuading them to hand over money and defrauding them of their life savings. Thai electricity and fuel have helped keep the compounds operating.

Guo Jiakun, spokesperson for China's Foreign Ministry, described China's cooperation with Thailand, Myanmar and other countries in tackling the criminal networks:

China is actively conducting bilateral and multilateral cooperation with Thailand, Myanmar, and other countries, taking comprehensive measures to address both the symptoms and root causes, and working together to block criminals from committing crimes in relevant countries.

Guo's statement followed a visit to the Thai-Myanmar border in late March by Liu Zhongyi, China's vice minister of public security. Liu's visit preceded large repatriations of thousands of workers from the scam centers, including an initial group of approximately 600 Chinese nationals.

The Thai government has also sought arrest warrants for three senior leaders of the Karen Border Guard Force, known as the BGF. The militia, which supports Myanmar's military government and controls Myawaddy, is being targeted over past human trafficking cases involving Thai nationals.

Thailand has extended similar measures to Cambodia, restricting border crossings across seven provinces and halting fuel exports to combat criminal syndicates there. Those actions followed a diplomatic crisis involving Prime Minister Paetongtarn Shinawatra.

Myanmar Residents Face Shortages and Long Queues

Myawaddy Township is experiencing severe fuel shortages following the restrictions. Prices have risen to between 3,000 and 10,000 kyats per liter, approximately $1.50 to $5.00, and residents are queuing from 3 am for limited supplies.

The scam centers continue to operate using generators and solar panels, while ordinary residents and farmers bear much of the burden of restricted fuel access. The security campaign is therefore unfolding alongside a daily struggle for people who need fuel for transport and farming.

Myanmar is also facing the effects of the wider regional energy shortage, after five years of economic devastation following the military coup in 2021. Farmers in the rice growing Irrawaddy delta now spend nights queuing at fuel depots.

Diesel prices there rose from 2,450 kyats per liter in February to 3,800 kyats by the middle of March, an increase of 1,350 kyats, or about 55 percent. Black market prices have reached 12,000 kyats per liter, more than three times the reported price of 3,800 kyats.

The United Nations World Food Programme warns that 12.4 million people in Myanmar, a quarter of the population, already struggle to find food. Higher fertilizer costs and restricted access to fuel threaten the coming cultivation season. Farmers need both supplies to prepare and work their fields, so rising costs reach beyond the immediate queues at fuel depots.

Middle East Disruption Tightens Asian Supplies

The Iran conflict has pushed up international oil prices and disrupted supplies of diesel, jet fuel and fertilizers across Asia. Regional economies are trying to secure fuel for domestic use as countries that normally supply them restrict shipments abroad.

China, the world's second largest fertilizer exporter and sixth largest jet fuel exporter, has ordered refiners backed by the state to halt overseas shipments of jet fuel, diesel and kerosene. Beijing has also instructed fertilizer exporters to stop shipments to key markets, including India, while maintaining some flows to Southeast Asia.

The restrictions were implemented without a public announcement through the National Development and Reform Commission. They aim to preserve Chinese reserves amid the closure of the Strait of Hormuz, adding another constraint to the supplies available to regional buyers.

Vietnam imports nearly 70 percent of the jet fuel it needs, with about 60 percent coming from Thailand and China. It faces potential supply disruption from April as those exporters prioritize domestic requirements.

Australian airlines rely on China for about one third of their jet fuel supplies and are already experiencing supply problems at rural airports. The effects extend across countries because airlines and other fuel users depend on purchases from a limited group of exporters.

Thailand's decision to put domestic fuel security ahead of export commitments sits within this regional squeeze. Keeping more fuel at home is intended to protect Thai supplies, while reduced shipments add pressure to neighboring economies that depend on imported energy.

Airfares Rise as Jet Fuel More Than Doubles

Thai Airways International has raised ticket prices by 10 to 15 percent as the price of Jet A-1 fuel climbed from approximately $80 per barrel to more than $200. Using those figures, the fuel price has risen by more than 150 percent.

The airline has partly cushioned the increase through fuel hedging covering about 50 percent of its needs through the middle of the year. Hedging is a financial arrangement used to limit exposure to price changes, giving the airline some protection while fuel becomes more expensive.

Domestic routes face particular pressure because Thai regulations prohibit a separate fuel surcharge on flights within the country. Airlines must deal with the higher cost within the pricing arrangements allowed for those services.

The fare increases show how an international energy shock reaches travelers in Thailand. Fuel becomes more expensive first, then operators adjust ticket prices as they try to cover the added cost of running services.

River Boats Warn of Cuts While Buses Hold On

Charoenporn Charoentham, managing director of Chao Phraya Express Boat Ltd, has warned that persistently high diesel prices could force the company to reduce services or suspend operations entirely. The private operator is buying diesel through wholesale traders at around 35 baht per liter, above a level it considers sustainable.

The warning puts river transport among the services under immediate financial pressure. Continued high fuel costs would leave the company facing a choice between maintaining its existing operations at an unsustainable cost and running fewer services.

The state bus operator Transport Co Ltd is maintaining service continuity through purchase agreements with PTT Plc that cover an extended period and reserve stocks of 100,000 to 120,000 liters daily. Those arrangements give it a buffer as the fuel market tightens.

Officials nevertheless acknowledge that prolonged high prices may eventually require bus fare increases. No date has been given for such an increase or for any reduction or suspension of the boat services.

Higher Costs Reach Eggs, Meat and Street Meals

Egg prices increased by 20 satang per egg on March 14. Retailers expect another increase of 0.10 to 0.20 baht per egg in early April because of transport costs. One baht contains 100 satang, so the March increase was equivalent to 0.20 baht per egg.

Restaurant operators in Bangkok's Bang Son area report increases across several types of meat. Pork has risen from 150 to 155 baht per kilogram, pork belly from 180 to 200 baht, and chicken from 70 to 90 baht.

The chicken increase is 20 baht per kilogram, or about 29 percent, compared with about 11 percent for pork belly and about 3 percent for pork. Those figures show why the pressure varies according to what a restaurant buys and serves.

Street vendors say they need to raise menu prices by 5 baht per dish to keep operating. Many are trying to absorb costs by managing electricity use and making their operations more efficient, rather than passing every increase straight to customers.

Fuel affects food prices through the cost of moving ingredients and finished goods. For restaurants and vendors already paying more for meat, higher delivery costs create another expense that must be covered by existing margins or higher menu prices.

Online Sellers Prepare for April Fee Changes

Shopee, Lazada and TikTok Shop have announced adjustments to commission and transaction fees taking effect from early April. The changes add to the pressures on Thai small and medium enterprises already dealing with higher energy and packaging costs.

Shopee Mall stores face commission rates of up to 15.52 percent in electronics and fashion categories. Lazada standard stores face maximum fees of 13 percent in some categories. The announced changes also cover TikTok Shop, although no specific rate is given for that platform.

Commissions are the share of a sale paid to the marketplace. Transaction fees are charges associated with processing a sale. For sellers, higher platform charges leave less of each payment available to cover products, packaging and other business expenses.

The timing brings several cost increases together. Retailers expect further egg price rises in early April, online sellers face new platform fees from early April, and Vietnam faces possible jet fuel disruption from April. Businesses are preparing for those changes while the Thai enforcement campaign is already under way.

How the Pressure Built

The events span border security measures, changes in fuel prices and new costs scheduled for April. The main dates show how restrictions and price pressures have accumulated:

• 2021: Myanmar's military coup begins the period of economic devastation now compounded by fuel shortages.
• February 5: Thailand cuts electricity, internet and fuel supplies to five locations across the Myanmar border.
• February to the middle of March: Diesel prices affecting farmers in Myanmar's Irrawaddy delta rise from 2,450 to 3,800 kyats per liter.
• March 14: Egg prices in Thailand rise by 20 satang per egg.
• Late March: China's vice minister of public security, Liu Zhongyi, visits the Thai-Myanmar border before large repatriations of workers from scam centers.
• March 26, 2026: Thailand's emergency enforcement response is unfolding alongside fuel seizures, transport warnings and higher household costs.
• Early April: Online marketplace fee changes take effect, and retailers expect another increase in egg prices.
• April: Vietnam faces potential jet fuel supply disruption.

Thailand's immediate response combines inspections, criminal penalties, export controls and public reporting of suspected abuses. The effects are already visible in seized diesel, queues at petrol stations, higher airline fares and food sellers preparing to charge more. Across the border, Myanmar residents face shortages while scam compounds continue operating with alternative power supplies.

Key Points

• Thailand has invoked the 1973 fuel shortage emergency decree, with penalties reaching 10 years in prison and fines of 100,000 baht.
• Seven measures cover hoarding, services, price monitoring, trader inspections, export restrictions, retail price displays and legal penalties.
• The export suspension covers petrol, gasohol, diesel, aviation fuel and LPG, with exceptions for Laos, Myanmar and products that cannot be sold domestically.
• Authorities seized 20,000 liters of diesel in Mae Sot, while the Central Investigation Bureau is reviewing more than 40,000 liters for possible stockpiling.
• Border restrictions target scam networks in Myanmar and Cambodia, while Myanmar residents and farmers face costly fuel shortages.
• China's fuel and fertilizer export restrictions are adding to regional supply pressure affecting Myanmar, Vietnam and Australia.
• Thai Airways has raised fares by 10 to 15 percent after Jet A-1 rose from about $80 to more than $200 per barrel.
• River transport faces possible service cuts, food prices are rising, and online marketplace fee changes begin in early April.