Half of Thailand’s fishing fleet may stay in port due to diesel shortage, rising fuel prices

Half of Thailand’s fishing fleet of about 9,000 vessels is expected to remain in ports in the coming weeks due to the shortage of diesel and anticipated price increases to the level that would make going to sea unaffordable for many boat owners who do not have strong financial backing, according to Mongkol Sukcharoenkana, president of the Thai Fisheries Association.

He said that the disruption of oil supplies from the Middle East during the war in the region is likely to drive up the price of ‘green’ fuel, which is allocated to the fishing industry with excise tax exemptions, to a prohibitive point for many boat owners.

Additionally, the diesel quota allocated to the fishing industry is likely to be halved, which would put further pressure on fishermen, said Mongkol.

He said that each commercial fishing vessel needs 700-1,000 litres of diesel for each fishing trip, which would mean an extra 7,000-10,000 baht for each trip if the price increases by 10 baht/litre.

He predicted that seafood prices would skyrocket, adding that small coastal fishermen would be hit hardest because some petrol stations have stopped filling containers, leaving many vessels unable to venture out to sea.

The executives of the Thai Fisheries Association have sought a meeting with Transport Minister Phiphat Ratchakitprakarn next Wednesday, in his capacity as head of the Joint Management and Monitoring Centre for the Situation in the Middle East, to discuss the fuel problem for the fishing industry.

He said he would like the diesel for fishing vessels to be pegged at 30 baht/litre, which would be affordable for most boat owners.

Currently, the price of diesel is frozen at 30 baht/litre, but this may be increased within a week due to the war in the Middle East.

Diesel for fishing vessels is exempted from excise tax by 6 baht/litre.