Thailand's prime minister slammed on Friday oil traders for "excessive profiteering", blaming those stockpiling fuel or smuggling it abroad for shortages that have driven prices steadily higher.

"Authorities have found cases of fuel stockpiling and smuggling for sale in neighbouring countries," Prime Minister Anutin Charnvirakul said, adding the problem had cost the government 50 billion baht.

"This action [smuggling and stockpiling] amounts to excessive profiteering from rising oil prices during the global energy crisis," he said, calling it "a major factor behind the nationwide fuel shortages seen in recent weeks".

Evidence of hoarding and profiteering among large and medium-sized oil traders had been found on land and at sea, he said.

Anutin said some seaborne shipments had been deliberately delayed so fuel would not arrive on schedule, allowing sellers to wait for retail price increases. Other shipments had been diverted for stockpiling and were thought to be destined for neighbouring countries.

More than 57 million litres of fuel were reported missing during sea transportation in southern Thailand, Minister of Justice Rutthaphon Naowarat said.

The Department of Special Investigation is pursuing the matter as a special case and investigations are under way, according to the prime minister.

The allegations of stockpiling come amid a public outcry over successive fuel price hikes in late March and early April.

Fuel prices in Thailand have reached record highs, with unleaded gasoline at 57.51 baht per litre and diesel at 47.74 baht.

The war in the Middle East, triggered by US and Israeli strikes on Iran on February 28, has caused disruptions to oil and gas supplies and price fluctuations across much of Southeast Asia.

Vietnam also hiked fuel prices again this week, bringing the cost of diesel to US$1.80 per litre – up more than 140 percent since late February.

The price of regular gasoline meanwhile was up more than 28 percent since the start of the war to US$1 per litre.

Hanoi has dipped into an emergency fuel price stabilisation fund and scrapped environmental taxes to ease pressure on fuel prices. (AFP)



Edited by Thomas McAlinden