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Thai Government to Roll Out Fuel Relief Measures from April 1

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BANGKOK – The government will introduce targeted fuel subsidies for the transport sector starting April 1, Transport Minister Phiphat Ratchakitprakarn has confirmed, as operators grapple with mounting costs and prepare to implement freight rate increases.

Thai Trucking Industry to Increase Freight Rates by 10% Starting April 1

Mr Phiphat, who also serves as deputy prime minister, said the Transport Ministry had finalized relief measures aimed at mitigating the impact of rising fuel prices on vulnerable segments of the transport industry and on the traveling public. The scheme will run from April 1 to 30 and will be based on actual usage, verified through GPS tracking and operational monitoring systems already maintained by the Department of Land Transport.

Two Groups of Beneficiaries

Assistance will be divided into two principal groups. The first covers non-scheduled freight trucks — commonly referred to as “yellow-plate” vehicles — totaling 287,175 units. Data from the Department of Land Transport indicates that these vehicles collectively travel approximately 31 million kilometers per day, with an average fuel efficiency of four kilometers per liter, consuming around 7.8 million liters of fuel daily.

Under the scheme, the government will subsidize diesel costs at 6 baht per liter. The ministry said the objective is to ease logistics costs for consumer goods and prevent a pass-through effect on retail prices that would exacerbate the cost of living.

The second group comprises public transport operators and ride-hailing drivers. Interprovincial buses (Categories 2 and 3), numbering 11,395 vehicles, will receive a 4 baht per liter subsidy. Provincial buses (Category 4), including vans, totaling 19,414 vehicles, will be granted a flat-rate subsidy of 300 baht per vehicle per day. Meanwhile, 114,653 registered ride-hailing drivers will receive 300 baht per vehicle per month.

Performance-Based Payments

Mr Phiphat stressed that payments would be strictly performance-based rather than issued as lump sums. Operators without GPS systems will be required to install QR codes to enable tracking of services and associated costs. He further assured that there would be no fare increases for state-run and affiliated interprovincial bus services during the upcoming Songkran holiday period. Existing fare structures will remain pegged to a diesel price of 33 baht per liter, with the government covering any excess.

“This is an initial, targeted measure aimed at vulnerable groups,” he said, adding that discussions are ongoing with the Ministry of Tourism and Sports regarding appropriate assistance for non-scheduled tourist buses.

Freight Rates to Rise

The relief measures come as the Land Transport Federation of Thailand has announced plans to raise freight charges nationwide from April 1, citing unsustainable fuel costs. Federation chairman Thongyoo Khongkhan said fuel now accounts for 45 to 50 percent of total transport costs.

Following a federation board meeting attended by representatives from 136 associations, Mr Thongyoo said freight rates would increase in stages across six to seven vehicle categories, from four-wheel trucks to 24-wheel articulated lorries. The initial rise will be 10 percent, potentially increasing to 15 percent and as high as 20 to 30 percent depending on fuel price movements.

Diesel prices have risen from around 30 baht to 39 baht per liter, pushing logistics costs up by an estimated 3 to 5 percent for every 1 baht increase.

Unavoidable Impact

Mr Thongyoo acknowledged that higher freight charges would have a cascading impact on consumer prices and the wider economy, particularly affecting low-income households. “This is unavoidable,” he said, adding that operators had no intention of burdening the public but were acting to ensure business survival.

Thai Fuel Prices Jump by Six Baht per Litre as Government Ends Subsidies

The twin developments — government subsidies on one hand and freight rate increases on the other — highlight the delicate balance authorities are trying to strike as they seek to cushion the impact of soaring fuel costs without distorting market mechanisms. For consumers, the combined effect may offer some relief on public transport fares while still facing higher prices for goods transported by truck.

-Thailand News (TN)

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