Rising Concerns Over Oil Hoarding in Southern Thailand
Police are currently investigating allegations of oil hoarding in southern Thailand, where fuel is being allegedly stockpiled and resold to neighboring countries. This has led to what authorities describe as “abnormal” vessel movements, raising concerns about the country’s fuel supply crisis.
The situation has worsened due to a combination of factors, including the ongoing conflict between the US and Israel against Iran, which has resulted in the closure of the Strait of Hormuz—a critical route for fuel shipments to Asia. As a result, diesel prices in Thailand have reached an all-time high of around 50 baht (US$1.54) per litre. Justice Minister Major-General Rutthaphon Naowarat confirmed that “oil has definitely gone missing,” though it remains unclear whether the amount is 57 or 58 million litres.
This volume represents nearly two days of the nation’s normal usage, suggesting a serious crime during a national emergency. Prime Minister Anutin Charnvirakul warned that the crisis could worsen, given Thailand’s heavy reliance on imported fuel.
The Crisis and Its Impact
Since the crisis began at the end of February, Anutin has repeatedly emphasized that Thailand holds about three months of fuel supplies to manage the emergency. However, reports of petrol stations running short or rationing fuel have emerged, prompting questions about the missing oil despite Thailand’s apparent surplus.
The southern province of Surat Thani has become the epicenter of a police investigation into alleged oil hoarding. Authorities are examining the entire supply chain—from oil depots to petrol stations—to identify where the leakage occurred. Data from ship movements suggests that some stocks may have been taken out to sea and transported back for resale at higher profits when prices surged.
“Abnormal vessel movement patterns may indicate mid-sea fuel transfers,” said Admiral Thadawut Thatphithakkul, chief of staff of the Royal Thai Navy, during a police briefing. He noted that vessels were moving more slowly than usual, deliberately stalling their journeys, which could be another factor contributing to fuel hoarding.
In Surat Thani, the initial probe found that deliveries were taking two or more days instead of the usual one day, with around 50 million litres of oil involved. Although this represents only a single day’s delay, the financial value of holding such a volume during the price surge is substantial.
Smuggling and Enforcement Challenges
Sea smuggling is difficult to detect and even harder to prosecute, according to a fisherman who has knowledge of oil smuggling in Thailand’s southern provinces. He pointed out that officials either lack the capacity or willingness to enforce regulations along the long sea border.
“The loopholes we’re seeing right now mostly come from officials turning a blind eye or not being serious about enforcement,” he said, asking to be known by his nickname Thep. “Let’s say these people operate illegally without fear of the law because if they get caught, they’re not the registered owner of the boat.”
The issue gained attention after a social media page originating in Cambodia posted a video showing an alleged oil transfer from a Thai ship in the Gulf of Thailand to a Cambodian vessel. This incident sparked tensions between Thailand and Cambodia, especially after a bloody border conflict last year.
Anutin called the act a “disgrace” that could be considered treasonous. His Cambodian counterpart, Hun Manet, however, insisted that his country had cut off fuel supplies from Thailand months ago and was not dependent on its neighbor despite the crisis.
Increased Naval Patrols and Suspicion
On Monday, the Thai navy issued a statement pledging to increase the frequency and coverage of its sea patrols, focusing on high-risk corridors and border zones to deter, intercept, and apprehend those involved in illegal fuel trafficking.
Meanwhile, a Malaysian-owned logistics firm is under suspicion after 100,000 litres of petrol were found stored underground in southern Songkhla province.
Anutin warned the Thai people to brace themselves for tougher times ahead due to dwindling fuel stocks, urging them to work from home where possible and conserve electricity.
“The problem many countries will face going forward will not simply be a sharp rise in oil prices, but the difficulty of securing oil imports,” he said in a social media post. “Thailand is one of the countries that depends on importing crude oil from every available source in the world.”
