Prime Minister Anutin Confirms New Thai Government Formation for Next Week

Thai Prime Minister Anutin Charnvirakul announces a new government will be seated next week, focusing on fuel security and consumer subsidies amid Middle East conflict.

By: AXL Media

Published: Mar 28, 2026, 6:15 AM EDT

Source: Reuters

Immediate Policy Priorities and Consumer Relief

The incoming government’s agenda will be heavily informed by the Bhumjaithai Party’s election platform. Deputy party leader Siripong Angkasakulkiat indicated that a policy statement is scheduled for April 7–9, prioritizing the next phase of a major consumer subsidy scheme. This initiative aims to stimulate domestic spending and provide a financial cushion for citizens facing rising costs of living. Finance Ministry officials have confirmed that the launch of these subsidies is contingent on the formal installation of the new cabinet.

Energy Security and Oil Price Turmoil

Prime Minister Anutin addressed recent volatility in domestic oil prices, apologizing for the turmoil experienced during the first half of March. After an initial 15-day price cap, the government has transitioned toward a more flexible "oil tax cut" model to manage the deficit in the state Oil Fund, which currently stands at approximately 38 billion baht ($1.16 billion). Despite the end of the strict price cap, officials stressed that there would not be a "full float" of prices, as the Oil Subsidy Fund will continue to offer tiered support to prevent extreme price spikes.

Strategic Sourcing and Maritime Diplomacy

To bolster national energy reserves, which currently stand at 107 days, the Thai Foreign Ministry has secured commitments from diverse international suppliers, including Brazil, Nigeria, Kazakhstan, and Azerbaijan. Furthermore, Thailand has engaged in high-level diplomatic coordination with Iran to ensure the "safe passage" of Thai vessels through the Strait of Hormuz. Foreign Minister Sihasak Phuangketkeow confirmed that several vessels, including those owned by industrial major SCG Chemicals, are being cleared for transit through the blockaded waterway.