Thailand weighs petrol curfew as Iran-United States tensions surge before ceasefire deadline. Oil supply fears rise, LPG demand doubles and economic risks deepen amid volatile global energy markets.
No final decision has been taken on proposals before Prime Minister Anutin Charnvirakul and his government to impose a curfew on Thailand’s vast petrol station network. The measure is one of several contingencies under review if war erupts again between Iran and the United States, alongside the Israel alliance, in the coming week. Thailand has previously sourced 51% of its crude from the Middle East. In recent days, state firm PTT Plc announced plans to diversify supply by sourcing crude from the Americas and Africa. However, it is reported that the government fears the move may damage already fragile consumer confidence if implemented.
Thailand is closely monitoring a knife-edge situation in the Middle East as tensions between Iran and the United States escalate. The April ceasefire deadline is approaching quickly. As a result, concern over global energy supply is intensifying. Consequently, Thai authorities are reviewing domestic measures to manage risk.
Meanwhile, the government is considering a nationwide nighttime curfew for petrol stations. The proposed hours run from 10pm to 5am. Officials say the measure could be introduced within days if needed.
However, no final decision has been announced. Prime Minister Anutin Charnvirakul said any move would be implemented cautiously. In particular, authorities want to avoid disruption to essential workers. Therefore, late-night refuelling needs remain under consideration.
Fuel curfew plan weighed as Thailand faces rising oil risks from escalating US-Iran tensions crisis
The proposal reflects growing concern over oil reserves and supply stability. At the same time, fuel price volatility continues to unsettle markets. Analysts warn these pressures could weigh on the broader economy. Consequently, fears of stagflation are increasing. Accordingly, policymakers are exploring measures that influence consumer behaviour without imposing full restrictions.
In this context, the curfew is seen as a signalling mechanism. It is designed to highlight the seriousness of the situation. As a result, motorists may be prompted to conserve fuel. In turn, demand pressure could ease during peak uncertainty. Energy executives say the psychological effect could be immediate and visible.
Suwatchai Pitakwongsaporn, president and chief executive of Atlas Energy Plc, said the closures would change driver behaviour. Specifically, motorists would refuel earlier in the day. However, he acknowledged that fuel retailers would see reduced sales. Nevertheless, he said the adjustment would be manageable as consumers adapt.
At the same time, the policy could accelerate a shift towards alternative fuels. Demand for LPG has already increased sharply. In March, vehicle conversions doubled from 400 to 800 units. This rise followed the escalation of the Middle East conflict. As a result, more drivers are seeking lower-cost fuel options.
Rising LPG demand highlights a shift from oil as Thai drivers respond to fuel costs and supply fears
Cost differences remain a key factor in this shift. LPG conversion costs between 20,000 and 25,000 baht. This includes tank installation and engine tuning. By contrast, a new electric vehicle costs at least 400,000 baht. Therefore, lower-income drivers are moving towards LPG. Meanwhile, electric vehicle adoption remains concentrated among higher-income groups.
In addition, EV buyers often already own petrol-powered vehicles. As a result, EVs are typically used as secondary cars. Moreover, industry executives report declining resale values for EVs. Consequently, long-term value perceptions remain mixed. Despite policy support, adoption has not broadened across income segments.
EVs are widely viewed as a clean option for urban driving. However, they are also seen as luxury items in Thailand. As a result, they are often associated with wealthier consumers. This perception contrasts with government expectations of mass adoption. Therefore, the sector’s growth path remains uneven.
Meanwhile, diesel prices continue to rise at unprecedented levels. This trend is increasing pressure on households and businesses. As a result, fuel cost concerns are becoming more acute. In turn, demand for alternatives such as LPG is strengthening.
Oil supply disruptions and damaged infrastructure signal prolonged high prices and slow recovery outlook
Furthermore, supply disruptions remain a central concern. The Middle East conflict has affected crude availability. In addition, damage to energy infrastructure is compounding the issue. Refineries and liquefied natural gas facilities have been impacted. Consequently, supply recovery is expected to take time.
Even if tensions ease, repairs will be prolonged. Industry estimates suggest a recovery period of two to three years. Therefore, elevated oil prices are likely to persist. This outlook continues to shape policy and market responses in Thailand.
In response, energy companies are adjusting their operations. Atlas Energy Plc has introduced cost-control measures to manage the downturn. For example, staff are working under flexible arrangements. Some employees now work from home to reduce commuting costs. Additionally, co-working spaces have been set up for sales teams.
Consumer confidence slides as Thailand weighs curbs while diversifying crude supply beyond Middle East
At the policy level, the government continues to assess the situation. The petrol station curfew remains under active consideration. However, officials are balancing conservation goals with public needs. Therefore, implementation details are still being reviewed. For now, no timeline has been confirmed, but authorities remain on alert as global developments unfold.
The fear among policymakers is that the move will further dent consumer confidence. This plummeted in March and is a key factor in the economy’s performance.
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In the meantime, state-owned Thai oil conglomerate PTT Plc has floated plans to source more crude from the American continent and Africa in a plan to deal with the present crisis. Nevertheless, even that plan would still leave 30% of the country’s crude coming from the Middle East, excluding Iran.
In a speech on Monday, Thailand’s Minister of Foreign Affairs Sihasak Phuangketkeow made clear that Thailand does not support this war. Nonetheless, he cautioned about the country and its representatives actively taking sides between more powerful international players.
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Further reading:
Anxiety about oil supplies and prices as economic growth in 2026 now dependent on the US Iran War
US Ambassador Seán O’ Neill briefed Prime Minister Anutin Charnvirakul at Government House on War
