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Economy

Rising oil prices add to Thai government's public debt burden

Ukraine tension may require state to borrow $3bn for oil subsidies

Thailand's State Oil Fund, which helps hold down retail prices, has run out of money and at the end of January, had a 14 billion baht ($429.4 million) deficit.    © Reuters

BANGKOK -- Inflation sparked by surging global oil prices is pushing the Thai government to borrow more money to finance oil price subsidies, but experts warn the additional debt will weigh on the treasury and could become a severe economic problem even after the end of the pandemic.

Thailand's headline inflation topped market forecasts, hitting 3.23%, year on year, in January, a nine-month high, driven by higher energy prices. That was above the 1% to 3% range targeted by the Bank of Thailand.

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