Thailand seeks crude oil from Russia, says domestic diesel prices to rise

Thailand has discussed with the Russian government the possibility of purchasing crude ‌oil, a deputy prime minister said on Tuesday.

Deputy premier Phiphat Ratchakitprakarn told reporters Thailand's foreign minister had discussed the issue of buying Russian crude at a meeting in Europe on Monday and it was understood negotiations were underway.

Thailand's government would discuss fuel prices later on Tuesday, Phiphat said. Diesel prices are set to rise on Wednesday, he added, after the expiry of a 15-day price cap at 29.94 baht per litre.

Thailand's government would try to cap domestic diesel prices at 33 baht ($1.02) per litre, Phiphat said.

The country's Oil Fund is ‌currently in deficit of more than 12 billion baht ($370.37 million) and the government has agreed that the fund must not spend more than 40 billion baht, he said.

As of Tuesday, Thailand has oil reserves for at least 101 days, comprising domestic reserves and additional imports from abroad, such as 1.9 million barrels from Angola and 625,000 barrels from the United States, Sarawut Kaewtathip, Director-General of the Energy Business Department, told ⁠a briefing.

Thailand also has forward contracts for additional crude supplies from overseas, he said.