Thailand is treating the oil shock linked to the Iran war as a catalyst to lean harder into electrification and domestic energy, Akanat Promphan said in a Bloomberg Television interview. Rising costs have strengthened the push to electrify the economy, including broader use of battery-powered vehicles.
"We have to prepare for all scenarios," Akanat said. He also noted, "The timing is right to accelerate the energy transition to electricity," describing the pivot as a way to reduce exposure to volatile fossil fuel prices while capturing environmental benefits.
Policymakers want to reduce dependence on imported crude, which presently makes up roughly 90% of Thailand's oil supply. Since the war began, Thailand has broadened sourcing - reducing the Middle East's share to under 30% from about 60% pre-crisis - by stepping up buys from the US and elsewhere.
That hit South and Southeast Asian economies that leaned on Middle Eastern supply particularly hard.
The nation's refineries have capacity above domestic demand, creating a buffer. The government has also leaned on an oil stabilization fund to shield consumers from higher prices, with Akanat emphasizing the tool is meant to smooth temporary spikes rather than serve as a permanent subsidy.
He noted that inventories of gasoline and diesel should keep the economy supplied for a minimum of 100 days. The Oil Fuel Fund shows a shortfall of roughly 83 billion baht ($2.48 billion). "The oil fund is being used to reduce the price at the pump," he said, adding that officials are considering further steps to prevent fuel costs from spilling over into broader inflation.
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In 2024, electricity accounted for just 19% of Thailand's final energy use - behind neighbors such as Vietnam, Singapore, Laos, and Malaysia - according to the International Energy Agency. The government's new power development plan establishes a floor of 65% for clean energy, with bolder pathways under study, including an upper-bound case reaching 89%. The current power mix remains tilted toward natural gas.
Akanat said gas will stay central through the transition because it emits less than coal and helps keep electricity affordable. About 70% of Thailand's gas is produced domestically, and the country has secured long-term LNG contracts, limiting exposure to volatile spot markets.
Officials are likewise bracing for surging load from new industries, including artificial intelligence and data centers. Akanat projected the system may need up to 10 gigawatts more capacity within the coming four to five years.
As more energy use shifts from oil to electricity, the spending map changes - less toward fuel imports and more toward utilities, grid buildouts, and renewables. If electricity's 19% share of consumption climbs, that tilt could become significant.
Short-term protections like the Oil Fuel Fund are easing pump prices, but the roughly 83 billion baht deficit shows there is a bill to pay. Watching how the clean energy plan moves toward that potential 89% scenario - and whether demand really adds up to 10 gigawatts in the next four to five years - can signal where real-economy cash is headed, from new power plants to transmission lines to server halls.
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