Key insights
- Thailand is introducing support measures to combat high oil prices, including subsidies and soft loans. The central bank is holding rates steady despite rising inflation and slowing growth due to geopolitical tensions. Fiscal discipline will be maintained, but public debt may exceed 70% of GDP if needed. These actions signal potential stagflation risks and could indirectly impact global energy markets.
BANGKOK, April 10 (Reuters) - Thailand’s government will approve a package of support measures to mitigate the impact of higher oil prices, the finance minister said on Friday, but he warned that the country has limited ammunition to address its economic problems.
Measures including support for welfare-card holders, fisheries and transport, as well as soft loans for fertilisers, electric vehicles and solar panel installations, will be proposed at a special cabinet meeting on Saturday, Ekniti Nitithanprapas told a briefing. * The government is planning a borrowing guarantee for anoil subsidy fund, along with other support measures, to mitigatethe impact of high oil prices. * The loan guarantee will not be considered on Saturday,Ekniti said, adding that any oil tax cut would be the lastresort. * As of April 10, 2026, Thailand has oil supplies sufficientfor about 110 days, while the Oil Fuel Fund recorded a deficitof 59.4 billion baht ($1.85 billion), the energy ministry said. * Ekniti said the government would try to preventstagflation in Thailand, but acknowledged there were risks. * The government will maintain fiscal discipline, but ifneeded, public debt could be allowed to exceed its ceiling of70% of GDP, Ekniti said. * The government is considering a car trade-in scheme forEVs and hybrid cars only, Ekniti said, adding that the budgetfor the next fiscal year will cut unnecessary spending. * Central bank Governor Vitai Ratanakorn said on Thursdaythat the policy rate of 1.00% would be kept on hold, despite theeconomic impact of the war in the Middle East, while growthcould slow to 1.3% to 1.7% this year and inflation could rise to2.5% to 3.5%, depending on the length of the conflict.
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