Oil Prices Test Thailand Fiscal Limits, Forcing End to Price Cap

Thailand has abandoned its price cap on diesel less than a month since the Middle East conflict broke out, a stark sign of how the surging global crude costs are threatening fiscal limits across emerging economies.

The government will allow pump prices to float, after weeks of keeping local costs artificially low rapidly pushed its fuel subsidy fund deeper into deficit. It is a sharp pivot for Prime Minister Anutin Charnvirakul, whose party won last month’s election partly on pledges to ease living costs.

Anutin sidestepped questions on Wednesday about a potential public backlash, offering only a brief acknowledgment ...