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Fuel Price wave hits Thailand’s multibillion-dollar fish trade as Middle East tensions continue

Thailand’s multibillion-dollar fishing industry is edging towards a standstill as diesel prices soar in the wake of the U.S.-Israeli war on Iran.

SAMUT SAKHOM : The warning has come from Samut Sakhon, the country’s largest fishing port on the Gulf of Thailand, where more than half of the fishing trawlers are already docked. Those still operating may soon stop as rising fuel costs make trips increasingly unsustainable, according to Jumpol Kanawaree, president of the Samut Sakhon Fishmonger Association.

Jumpol said the pressure on fishermen has become unbearable, with boat owners struggling to cover the costs of crews and support their families. He warned that after April 1, fish supplies could begin to disappear from markets if vessels are forced to remain at port.

Thailand’s fishing industry is a major export earner. Government data showed the country exported $7 billion worth of fishery products in 2024 to markets including the United States, Japan and China.

The latest fuel shock comes after diesel prices climbed sharply following the end of government subsidies. Thai diesel prices reached 38.94 baht per litre on Thursday, up from 29.94 baht per litre in February before the conflict in the Middle East began to drive market uncertainty.

Fishermen say the industry will become unviable if diesel touches 40 baht a litre. Some crews have already started cutting back by sailing more slowly to save fuel, a move that has also reduced catches.

Fisherman Boonchoo Lonluy said the higher diesel costs were directly hurting daily operations, forcing crews to change the way they work while earning less from each trip. Another fisherman, Prariyes Maneesumphan, said many would have no choice but to dock their vessels if prices rise further.

Despite the growing crisis, some boats were still seen unloading shrimp, mackerel and squid at Samut Sakhon’s pier this week, using fuel bought before the latest price jump. Around 800 tonnes of fish from 22 coastal areas are sold at the market each day, underscoring the scale of the disruption if operations stop.

Jumpol described the fuel crunch as the worst crisis the sector has faced in decades, saying it was even more crippling than the COVID-19 pandemic.

Thailand’s Finance Minister Ekniti Nitithanprapas said on Wednesday that the government was preparing a support package for fishermen, including supplies of B20 biodiesel and palm oil to help prevent further price surges. Officials have also said the country has around 100 days of oil reserves.

Thailand's fishing industry faces a severe crisis as rising fuel costs, driven by Middle East tensions, threaten to dock half of the country's trawlers. With diesel prices nearing unsustainable levels, fishermen struggle to maintain operations, risking a significant drop in fish supplies. The government is preparing support measures to mitigate the impact.

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