Thai Fishing Industry Nears Standstill as Iran War Pushes Fuel Costs to Record Highs

Rising fuel costs from the Middle East conflict threaten Thailand's $7 billion fishing industry. Trawlers remain docked as diesel prices hit record levels in 2026.

By: AXL Media

Published: Mar 26, 2026, 8:19 AM EDT

Source: Reuters

A Looming Deadline for the Gulf of Thailand Fleet

At Samut Sakhon, Thailand's premier fishing hub, the economic impact of the U.S.-Israeli conflict with Iran has become visible as over 50 percent of the local trawler fleet remains docked. Jumpol Kanawaree, president of the Samut Sakhon Fishmonger Association, issued a dire warning that remaining operations are likely to cease by April 1. The surge in fuel costs has made it impossible for boat owners to cover basic expenses, including crew wages and family provisions, threatening the livelihoods of thousands of maritime workers.

The Economic Toll of Disrupted Fuel Subsidies

The financial viability of the industry vanished almost overnight as Thai diesel prices climbed to 38.94 baht ($1.19) per litre on Thursday. This follows the expiration of government subsidies and a sharp rise from the February baseline of 29.94 baht. Fishermen on the ground report that if prices touch the 40 baht threshold, even the most efficient vessels will become unviable. In an attempt to survive, some crews have resorted to sailing at slower speeds to conserve fuel, but this has inadvertently led to lower catch volumes and reduced revenue.

Government Response and Strategic Reserves

In response to the escalating crisis, Finance Minister Ekniti Nitithanprapas announced that the government is formulating an emergency support package. Proposed measures include the distribution of B20 biodiesel and palm oil to mitigate the impact of the global energy shock. While officials maintain that Thailand holds approximately 100 days of oil reserves, the immediate price pressure on the retail market is already more crippling than the disruptions seen during the COVID-19 pandemic. The Thai Fisheries Department has yet to provide a long-term roadmap for the sector's recovery.