Millions of motorists across Thailand faced the steepest fuel-price increases in decades Thursday after the government slashed subsidies to address soaring global oil costs. The move by Prime Minister Srettha Thavisin's administration represents a major shift in energy policy as Bangkok struggles with budget pressures. Fuel prices jumped 22% overnight, catching consumers and businesses off guard.

The subsidy cuts come as Thailand grapples with rising inflation and a weakening baht against the US dollar. Global crude oil prices have remained volatile following OPEC+ production decisions and geopolitical tensions. For years, Thailand maintained generous fuel subsidies to protect consumers, but the financial burden became unsustainable as international energy markets fluctuated. The government had warned that continued subsidies would strain public finances.

Transportation companies and logistics operators will face immediate cost increases, potentially triggering higher prices for goods and services nationwide. Commuters who rely on personal vehicles for daily travel will also feel the impact in their household budgets. The subsidy reduction marks a turning point in Thailand's approach to managing energy costs during global market volatility.