Thailand freezes fares, offers fuel subsidies after 6-baht pump price shock
Transport Ministry launches fuel subsidy for trucks, buses, and riders through April to stabilize travel costs
The Ministry of Transport has introduced targeted fuel subsidies for four specific transport groups from April 1 to 30, 2026. At the same time, it is freezing public transport fares to ensure affordable travel during the Songkran festival.
The move follows a sharp retail fuel price hike of 6 baht per liter on March 26, 2026, by the Fuel Fund Executive Committee (FFEC). This spike was driven by Middle East tensions. As a result, Singapore diesel prices rose from $198.20 to $242.91 per barrel. The Oil Fuel Fund currently faces a daily compensation burden of approximately 2.59 billion baht. This results in a deficit of over 35 billion baht.
In response to the direct impact on the transport sector, a special Cabinet meeting on March 26 approved seven urgent measures. Among these is a targeted relief plan for cargo and public transport vehicles.
Targeted subsidies for four transport groups
Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport, detailed the subsidy structure on March 27. The support is divided as follows:
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Large Trucks: Non-regular trucks with 10 wheels or more (287,175 vehicles) receive a subsidy of 6 baht per liter, the highest rate due to their critical role in the national supply chain.
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Large Public Buses: Transport Co., Ltd. buses and private joint-venture buses in categories 2 and 3 (11,395 vehicles) receive 4 baht per liter.
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Small Public Vehicles: Fixed-route vans and “Songthaew” trucks in category 4 (19,414 vehicles) receive 300 baht per vehicle per day.
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Motorcycles and Riders: Registered motorcycle taxis and delivery riders (114,653 individuals) receive 300 baht per person per month.
Registration and GPS requirements
The measures are active throughout April 2026. Compensation will be calculated based on actual usage tracked via GPS and mobile applications. This is to ensure direct payment to drivers.
For large trucks already equipped with GPS, the government will transfer subsidies via PromptPay based on verified mileage. Owners of small public vehicles and motorcycle taxis must register with the Department of Land Transport. This is required to enter the tracking system and qualify for support.
Fare freeze for Songkran travelers
To protect citizens during the Thai New Year, the Ministry of Transport has ordered a price freeze on all public transport fares.
Fares will remain calculated based on a diesel price of 33 baht per liter, with the government covering the cost difference.
Additional measures include releasing oil reserves and promoting B20 diesel for the transport sector, which is approximately 5 baht cheaper per liter than standard diesel. The ministry has also established dedicated refueling points for public vehicles in every province to prevent shortages and set up a War Room to monitor fuel prices and transport impacts.
Songkran festival to boost Thailand’s economy with 30 billion baht
These subsidies are part of a broader seven-measure relief package. This package includes fuel excise tax cuts and increasing State Welfare Card allowances to 400 baht per month. It also comprises fertilizer subsidies for farmers and special fuel prices for fishermen. There are also adjusted construction contract conditions (K factor) for state contractors. In addition, 10 billion baht in soft loans are offered from Government Savings Bank for SMEs.
Operators are urged to ensure their vehicles are GPS-equipped or registered with the Department of Land Transport. This is necessary to meet the mandatory requirements for compensation.
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