Thai finance chief sees oil prices elevated for up to two years

Thailand expects oil prices to remain elevated for up to two years due to the Middle East conflict, its finance minister said, signalling prolonged pressure on a net energy importer already grappling with rising costs and slowing growth.



Energy infrastructure in the Middle East has been so severely disrupted that oil and gas supply may take one to two years to stabilise, Finance Minister Ekniti Nitithanprapas told lawmakers on April 9 during a parliamentary debate following the government’s policy statement.



The government plans to accelerate adoption of solar power, biofuels and other renewables to cushion households and businesses from higher energy costs, he added.



Thailand has relied heavily on diesel subsidies to shield households and industry.



The state oil fund is spending about $32. 9 million a day, pushing its deficit to more than $1.7 billion, according to officials.