Thailand is in the final stage of preparing its new national oil plan, which is designed to support the country’s goal of achieving net-zero greenhouse gas emissions by 2050.
The plan is expected to be launched soon, according to the Department of Energy Business (DOEB), as director-general Sarawut Kaewtathip said the climate target requires significant changes across both the transport and fuel sectors.
Thailand remains reliant on imported crude oil, sourcing more than 90% of its crude requirements from overseas. This dependence leaves the country vulnerable to global price fluctuations, supply disruptions and geopolitical tensions, as current conflicts in the Middle East have triggered volatile energy costs and delivery delays.
The plan covers 2026 to 2050, with a goal of reducing reliance on imported fossil fuels by increasing the use of domestically produced fuels, cleaner energy alternatives and more efficient fuel infrastructure, while gradually lowering carbon emissions.
Compared with the 2024 oil plan, the 2026 version significantly expands the role of biofuels, Mr Sarawut said.
Biofuel use will extend beyond road transport, where E20 gasohol and B20 biodiesel are already promoted, to the aviation and maritime sectors. Sustainable aviation fuel (SAF) will play a key role in reducing emissions from air transport, while low-carbon marine fuels, including B24 biodiesel blends, will be introduced for the shipping industry, he said.
E20 is expected to become Thailand’s main petrol grade, while B20 will remain the country’s primary clean diesel option, Mr Sarawut noted.
E20 contains 20% ethanol, while B20 is blended with 20% palm oil-derived methyl ester.
The plan also supports the use of transition fuels, particularly liquefied natural gas (LNG) in the transport sector, he said. LNG emits around 20-30% less carbon dioxide than conventional oil products and offers a longer driving range than compressed natural gas.
According to joint research conducted by the DOEB and Chulalongkorn University, Thailand’s oil demand is projected to peak this year before gradually declining to about half its peak level by 2050.
The reduction will be driven largely by the growing adoption of electric vehicles, while demand for jet fuel and liquefied petroleum gas is expected to decline at a slower pace, the research noted.
Thailand’s six major oil refineries will receive government support to accelerate the production of SAF and other low-carbon fuels, according to the plan. The support includes investment incentives approved by the Board of Investment in 2025, as well as the introduction of fuel quality standards aimed at strengthening market confidence.
To improve efficiency in fuel distribution, the government plans to expand pipeline transport to comprise 45-55% of total fuel movement. The strategy includes new pipeline interconnection regulations, fair access rules for operators and tax reforms designed to reduce logistics costs.
Regarding energy security, the DOEB is working with the International Energy Agency to optimise Thailand’s strategic oil reserves.
The initiative focuses on maximising existing storage facilities and establishing a central monitoring system to improve crisis management without imposing additional costs on consumers, Mr Sarawut said.