FTI urges swift energy price cuts as Middle East tensions ease

The Federation of Thai Industries (FTI) has proposed five urgent measures to the government for the adjustment of domestic energy prices in line with falling global costs, following an easing of tensions in the Middle East.

FTI chairwoman Pimjai Leeissaranukul stated yesterday that, as global oil markets stabilise and crude prices decline, the government must act quickly to ensure domestic pricing reflects these lower costs.

She emphasised that timely adjustments would ease cost-of-living burdens, lower operational expenses for businesses and bolster the country's economic recovery.

Under the first recommendation, the FTI called for a fast-track cost reduction pass-through. The government should immediately adjust domestic retail fuel prices to accurately reflect the rapid decline in global crude costs, ensuring the process is handled transparently and fairly so both consumers and businesses benefit directly.

Secondly, the federation advised balancing the Oil Fuel Fund. Management of the state fund needs to be reassessed by reviewing and lowering the financial collection burden imposed on fuel users, ensuring that the public and private sectors are not saddled with unnecessarily high energy costs during a market cooldown.

Thirdly, the FTI emphasised the reduction of broader economic costs. High fuel prices do not only impact motorists. They create a domino effect that drives up logistics, food production and overall manufacturing costs. Relief in this area is particularly critical for small and medium-sized enterprises (SMEs) in restoring their market competitiveness and stimulating macroeconomic activity.

The fourth proposal focuses on building economic confidence. The government needs to demonstrate responsive and agile economic governance by implementing policies that swiftly adapt to shifting global market dynamics, as clear and decisive actions would help restore trust among citizens, businesses and foreign investors.

Lastly, the federation urged the government to accelerate the green transition. The government must actively push for a transition towards clean energy while reducing the nation's reliance on fossil fuels, by promoting energy efficiency and supporting renewable energy infrastructure, to secure long-term energy sustainability.

Pimjai added that these measures serve a dual purpose, functioning as short-term relief to cushion immediate financial impacts while laying down a solid framework for long-term national energy security during a period of continued global market volatility.