Thailand has diversified its sources of oil imports, rather than relying heavily on the Middle East, to ensure energy security amidst geopolitical risks and uncertainty of navigation through the Strait of Hormuz, according to Nantapong Chiralerspong, director-general of the Trade Policy and Strategy Office (TPSO).
From March to September, he said that 40.1% of crude oil was imported from the United Arab Emirates, 18.1% from Saudi Arabia and 16.2% from the United States. Altogether, oil imports from the three countries accounted for 74.4% of total oil imports.
Since the conflict, oil imports from the three countries have dropped to 54.7% in value, as Thailand has shifted its external oil sources to Angola, Brazil and Argentina, reflecting the expansion of alternative oil sources to include Latin America and Africa.
He said that the diversification has made the US the top oil supplier, followed by Australia and Myanmar.
Although the diversification of oil import sources has helped reduce the risk of domestic oil shortage, Nantapong said that it has not, however, immediately reduced energy costs because import prices depend on market mechanisms, transportation costs, foreign exchange rates and the terms of oil contracts.
The oil import price index for September stood at 130.7, up 12.3% compared to the same period last year. Specifically, the price of fuel products went up 45.7%, reflecting concern over the global oil supply.
Inflation for October was 3.90%, because oil prices were up by 29.18%.
He said his office will continue to monitor oil imports, and price movements on other products, to assess the risks to supply and costs in tandem with preparations to cope with global economic volatility to reduce impacts on businesses and the cost of living.
