Thailand's Energy Ministry is weighing whether to abandon plans to borrow 150 billion baht to support the Oil Fuel Fund, following a breakthrough in negotiations with oil refineries to lower diesel prices.

Uncertainty surrounds whether fuel prices can be capped during Thailand's upcoming Songkran holiday, as the Oil Fuel Fund faces a 42-billion-baht deficit, with pump prices for diesel and petrol now hitting an all-time high after the latest announcement on fuel subsidies.

Thailand's Oil Fuel Fund is requesting a loan of up to 150 billion baht to stabilize its finances and continue subsidizing domestic fuel prices as global diesel costs escalate.

Thai Ministry of Finance officials are preparing measures to reduce excise taxes on fuel and draft legislation to allow the Oil Fuel Fund to borrow additional funds to stabilize domestic prices.

Thai authorities are preparing to secure a loan from commercial banks to stabilize the nation's rapidly depleting Oil Fuel Fund, following the formation of the new cabinet under Prime Minister Anutin Charnvirakul.