The escalation of conflict in the Middle East has triggered global concerns over energy supplies. As one of the Asian countries with the highest dependency on energy imports, Thailand now faces multiple challenges, including surging oil prices, civilian stockpiling of supplies, and a contraction in its tourism industry. Experts are warning that Thailand's economy has been thrust into the center of a geopolitical storm.
According to the Bangkok Post, Thailand's transport and tourism sectors are now bearing the brunt of rising oil prices. Sanjak, chairman of the Khao San Road Trade Association, pointed out that inflation and rising travel costs driven by oil price fluctuations are dampening the willingness of Western tourists to visit Thailand. Industry insiders predict that if the conflict does not ease, international tourism revenue during Songkran will be affected, as tourists may abandon long-haul flights for budget reasons, opting instead for neighboring countries as alternative destinations.
With the escalation of US-Israel-Iran conflicts and security in the Strait of Hormuz under threat, Thai citizens’ concerns about the stability of oil supplies have significantly increased. According to reports, on the 4th, several petrol stations in Chiang Mai saw long queues of cars as people rushed to fill up their tanks before any shortage; in the border region of Chiang Rai, some stations were even forced to close early as they ran out of stock.
Aside from private vehicles, stockpiling behaviors have also appeared in the business sector. Olanuch, a 38-year-old feed mill operator in Nakhon Ratchasima, said she had instructed employees to fill all production machinery and trucks, in addition to separately storing an extra thousand liters of diesel. She pointed out with concern that these reserves could only last about a week, and faced with the unpredictable developments of the conflict and continuing spikes in oil prices, she may have to raise product prices to maintain business operations.
Chaiyong, spokesman for the Senate Committee on Military and National Security, said that although Thailand has around 60 days of strategic national oil reserves, oil depots in southern Thailand can only maintain operations for about 15 days. If hostilities drag on, authorities in the south may be forced to implement fuel rationing.
He said: “The public will not be left without fuel to use, but volatility in oil prices is inevitable. The main impact will be felt by fuel dealers and wholesalers, because large oil companies will prioritize supplying fuel to their own branded service stations.”