Ban on refined oil exports to continue

Thailand's energy authorities have confirmed that the country will continue its ban on refined oil exports, despite mounting pressure from domestic refineries struggling with limited storage capacity.

The decision comes as conflicts in the Middle East persist, raising concerns about the stability of global energy supplies.

An official from the Energy Ministry who requested anonymity said the ongoing tensions between Iran, Israel and the US mean the situation is still volatile. Disruptions in the supply of petroleum, chemicals and liquefied natural gas (LNG) from nations around the Strait of Hormuz remain a serious concern.

"We will consider easing restrictions on refined oil exports cautiously and prudently because we prioritise energy supply security," the official said.

The government will not lift restrictions until it is certain that international conflicts will not disrupt the transportation of vital energy resources, noted the official.

The cabinet first imposed the export ban at the end of March, allowing only limited shipments to Laos and Myanmar. Exports were capped at less than 5 million litres per day, with Laos receiving more than 4 million litres and Myanmar about 300,000 litres daily.

In May, the National Security Council granted an exemption for A1 jet fuel exports to the Philippines, Singapore and Vietnam, arguing that aviation fuel shipments would not affect domestic consumption.

Jet fuel demand in Thailand averages around 20 million litres per day for both domestic and international flights. With refining capacity exceeding demand by more than 10%, the exemption has reduced stockpiles, which currently tally about 300 million litres, according to officials.

Still, the storage of massive amounts of refined oil has strained the financial health of refineries.

Leasing storage facilities has become a costly burden, forcing some operators to cut back production. PTT Global Chemical Plc and Bangchak Sriracha Plc have each reduced refining capacity by 15%, according to the Department of Energy Business.

The Energy Ministry stressed that ensuring sufficient fuel supplies for the public remains its top priority.

Diesel consumption has surged to more than 77 million litres per day, significantly higher than the usual 70–73 million litres.

This increase has persisted despite elevated fuel prices. On June 11, diesel was priced at 40.8 baht per litre, up 33% from pre-war levels of 30 baht. Even B20 diesel, blended with palm oil-derived methyl ester, was at 35.80 baht per litre.

"This demonstrates that despite high oil prices, consumption continues to grow, and this growth has been happening for several consecutive days," the official said.

Given the rising demand and uncertain global outlook, authorities insist that expanding exports of other oil products is not under consideration at this time.