According to figures obtained by The Phuket News, Phuket people spent B13.7 billion on gasoline and diesel in 2024 ‒ about B37.534 million a day.
Last year, the entire country spent B36.5bn on fuel ‒ about B100mn a day ‒ meaning that Phuket motorists last year bought 37.5% of all fuel bought in the country.
Rattakorn Klinchan, Chief of the Phuket Energy Office, warned that without better public transport, EV adoption and renewable energy, costs will only continue to climb as traffic congestion and tourist numbers increase.
“The rise in cars, residents and tourists is directly linked to higher fuel consumption,” he said. “Much of that fuel is literally being burned in traffic,” he added.
Phuket’s fuel consumption is dominated by gasoline, reflecting the high number of private vehicles on the island, unlike other provinces, which rely more on diesel, Mr Rattakorn noted.
In 2024, Phuket’s gasoline consumption reached 205 million litres while diesel consumption reached 190mn litres ‒ giving a combined total of 561,643 litres a day. Motorists using alternative fuel LPG burned through a total 22.2mn kg last year, Mr Rattakorn explained.
“Compared to 2023, gasoline use in 2024 increased by about 8%. It is difficult to calculate so far, but at this stage it looks like [overall fuel consumption in 2025] will increase by even more than 8%,” he added.
COSTS AND REVENUES
Fuel prices in Phuket are generally higher than in Bangkok, as all fuel on the island is brought to Phuket by truck, Mr Rattakorn also noted.
In Phuket, 95 petrol costs B34.04 per litre, while in Bangkok it costs B33.11, he said, citing figures from last week.
While the different types of petrol are only about B1 more expensive than in the capital, altogether over a year the price difference does have a significant effect on per capita costs, he noted.
While Phuket motorists are paying at the pumps, local authorities get to use some of that money for their own purposes.
“Price structures include excise taxes, municipal taxes, energy conservation fund taxes, oil fund contributions, marketing fees and VAT, with the Phuket Provincial Administrative Organisation (PPAO) collecting an additional 4.54 satang per litre on gasoline and diesel sold in Phuket,” Mr Rattanakorn explained.
At the rates given, the PPAO last year alone received B9.3mn from gasoline sales and a further B8.626mn from diesel.
SUBSIDIES
As most long-term residents know, petrol and diesel prices in Thailand are relatively cheap compared with other places around the world, namely because of the often-overlooked ‘Oil Fund’.
During her brief year in office, former Prime Minister Paetongtarn Shinawatra made great strides in reducing the Oil Fund deficit, abused by former administrations to falsely keep fuel costs down, from B95.333 billion in October last year to B22bn at the time she was removed from office earlier this month.
Mr Rattakorn explained that while diesel prices are directly controlled by subsidies from the Oil Fund, gasoline is not directly subsidised.
Instead, gasoline prices are directly controlled by government intervention by instructing PTT petrol stations to raise or lower prices. Other operators are forced to match prices changes in order to remain competitive.
If and when deemed necessary, PTT receives what the government likes to call a “refund” ‒ not a “subsidy” ‒ as reparations for any losses incurred by the mandated price changes.
Regardless, fuel subsidies and consumption come at a high cost, Mr Rattakorn said.
“Traffic congestion, rising global oil prices and subsidies combine to put enormous financial pressure on the province and the Oil Fund,” he explained.
“The island is served by 72 petrol stations, a high number for such a small province, reflecting its high-energy demands and tourist traffic,” he added.
Explaining how much the subsidies cost the government, Mr Rattakorn noted, “The Thai government subsidises diesel to keep prices below B33 per litre. It is currently subsidised at B0.33 per litre… But after the Russian invasion of Ukraine, oil prices soared and the government was forced to subsidise diesel by as much as B2 per litre.”
FREE FLOW
Large-scale road infrastructure projects are essential to ease traffic congestion and reduce wasted fuel, said Mr Rattakorn
Projects such as the Muang Mai – Koh Kaew – Kathu Expressway (including the Patong Tunnel), the Pa Khlok road expansion and the decades-in-coming light rail system are intended to cut travel times and lower fuel demand, he explained
“The project of expanding the roads helps reduce fuel consumption, but only modestly,” Mr Rattakorn admitted. “If Phuket cannot implement a light rail or expand public transportation, building more roads will only provide limited relief.
“It does not guarantee that the number of cars and motorbikes on the roads will decrease, so the impact on fuel consumption and congestion will be small.”
Decisions on whether to accelerate these projects are still ongoing, but Mr Rattakorn agrees that without faster implementation, traffic congestion and fuel costs will continue to climb.
EV EASE
EV adoption is growing in Phuket, though challenges remain, Mr Rattakorn said. “Electric vehicles help cut fuel use and emissions, costing the average user around B2,000 per month compared to B5,000 for gasoline.
“Battery degradation and limited charging infrastructure are obstacles, but future developments with replaceable batteries will help,” he said.
EV buses, in particular, are having a measurable impact. “Electric buses reduce diesel consumption and fuel subsidies, which is good for both the PPAO budget and the Oil Fund,” Mr Rattakorn said.
However, he added, “EVs help lower fuel costs and emissions, but they do not solve traffic congestion alone. Expanding the EV bus fleet, along with affordable EV tuk-tuks and better route planning, is one of the most effective ways to reduce both congestion and overall fuel spending.”
Public transport improvements are crucial, Mr Rattakorn said plainly. “Developing electric trains, buses and affordable EV tuk-tuks will reduce private vehicle use, congestion and fuel consumption,” he concluded.