Thailand Raises Diesel Price Ceiling for Public Construction Projects
The Comptroller General's Department of Thailand has increased the diesel price ceiling used in calculating reference prices for public construction projects to 69.99 baht per litre, up from the previous limit of 50.99 baht. This adjustment aims to reflect rising construction costs driven by the ongoing war in the Middle East and the resulting energy crisis. Patricia Mongkhonvanit, the department's director-general, stated that the measure is preventive, designed to ensure volatile oil prices do not disrupt procurement calculations or cause financial losses for contractors. The committee has also instructed staff to prepare contingency studies for potential diesel prices reaching 100 baht per litre. Additionally, new guidelines were issued to mitigate impacts on suppliers and contractors affected by the conflict. These include treating inability to sign contracts after February 28, 2026, as reasonable grounds rather than abandonment, and classifying performance delays due to the conflict as force majeure. This allows for waived fines, extended deadlines, and flexible notification requirements, aiming to sustain operators and prevent project abandonment amid geopolitical instability.
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Thailand Raises Diesel Price Ceiling for Public Construction Projects
The Comptroller General's Department of Thailand has increased the diesel price ceiling used in calculating reference prices for public construction projects to 69.99 baht per litre, up from the previous limit of 50.99 baht. This adjustment aims to reflect rising construction costs driven by the ongoing war in the Middle East and the resulting energy crisis. Patricia Mongkhonvanit, the department's director-general, stated that the measure is preventive, designed to ensure volatile oil prices do not disrupt procurement calculations or cause financial losses for contractors. The committee has also instructed staff to prepare contingency studies for potential diesel prices reaching 100 baht per litre. Additionally, new guidelines were issued to mitigate impacts on suppliers and contractors affected by the conflict. These include treating inability to sign contracts after February 28, 2026, as reasonable grounds rather than abandonment, and classifying performance delays due to the conflict as force majeure. This allows for waived fines, extended deadlines, and flexible notification requirements, aiming to sustain operators and prevent project abandonment amid geopolitical instability.
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