Thailand clinches deal with Iran for safe oil route via Hormuz
Thailand has reached a Strait of Hormuz oil deal with Iran to allow Thai oil tankers to transit the waterway safely, Prime Minister Anutin Charnvirakul said on Saturday, March 28, as the government adjusts its response to energy market volatility.
Anutin announced the agreement during a press briefing titled “One month of global crisis: Thailand’s plan for a changed world” at the Government House in Bangkok. He said the arrangement would help alleviate concerns over fuel shortages and allow some shipments to reach the country more quickly.
He said the Ministry of Foreign Affairs had accelerated talks with relevant countries on trade and maritime transport, and that negotiations with Iran had now succeeded. Anutin said the agreement supports Thailand’s energy security while the broader situation remains uncertain.
The 32nd prime minister of Thailand urged the public not to panic, saying domestic fuel supplies remain sufficient for demand. He apologised for recent fuel price volatility, saying the newly formed government initially misjudged how prolonged the situation could be, and has since adjusted its approach to focus on cushioning impacts, especially for low-income groups, farmers, transport operators, fisheries and industry.
Anutin said shortages at petrol stations in some areas have begun to ease after agencies increased delivery frequency and transport time, released reserves, and intensified action against hoarding.
He further said the government has ended the full fuel price cap, arguing it reduced incentives for stockpiling and cross-border smuggling and eased pressure on the Oil Fund, while stressing this does not mean fully floating prices as support will continue at an appropriate level.
He said average fuel consumption has risen to about 82 million litres per day, compared with about 67 million litres per day before March 1.
Previously, on March 11, a Thai-owned cargo vessel, Mayuree Naree, was attacked in Hormuz, leaving three Thai nationals reported missing while 20 other crew members were rescued, according to reports.
Tehran admitted to the attack, saying the ship “ignored warnings and attempted to illegally pass through the Strait of Hormuz.”
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