Thailand’s state-backed energy giant PTT will freeze pump prices for 15 days as war in the Middle East throttles the flow of oil and gas through the crucial Strait of Hormuz, spurring panic buying and some fuel rationing across parts of the Mekong.
Thailand, Laos, Cambodia and Myanmar are heavily reliant on Middle Eastern oil and gas, whose flows have been strangled since the weekend when the US and Israel attacked Iran, prompting Tehran to strike back, hitting tankers and energy facilities across the Gulf.
US President Donald Trump has pledged that Washington would provide a naval escort if necessary to get tankers moving through the narrow strait, a transit point for 20 per cent of the world’s fuel. He also offered to backstop shipping insurers, which have dumped contracts in recent days, fearing catastrophic losses as the war spirals.
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But his comments did not soothe oil markets, which jumped on Wednesday to US$82 a barrel of Brent crude from US$72 on Friday, a day before the start of hostilities.
Nor did they assuage fears in Mekong nations, which are running low on oil and gas supplies. Social media videos show long queues at gas stations in Thailand, especially along its border with Myanmar, as well as in the Laotian capital Vientiane.
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At the start of the conflict, Thailand said it had 61 days of fuel reserves – around half of them are in transit.