Captain Wongduen Meesamrong returned to port in the Gulf of Thailand earlier this month after 15 days at sea, only to find his livelihood had vanished although he was away. When he departed, diesel was priced at 83 cents a litre. By the time he docked, the cost had more than doubled to approximately $2.22 a litre.
This sudden price shock is a symptom of a broader crisis where Thailand’s enormous fishing industry highlights ‘huge trouble’ caused by Middle East war. The conflict and a blockade on the Strait of Hormuz have strangled fuel supplies, leaving tens of thousands of small and commercial vessels stranded on shore. For a nation that imports about 50 per cent of its energy from the Middle East, the geopolitical instability is translating directly into economic paralysis at the docks.
“I’ll have to stop working for a long time,” Meesamrong said as his crew offloaded crates of squid and small fish in Samut Sakhon, the country’s largest seafood processing hub. “The fuel price is so expensive. One can’t go out. We’re in big trouble. All over the sea, people are feeling it.”
The Economic Ripple Effect: From Docks to Dinner Tables
The crisis is not contained to the captains of the fleet. As the fishing industry serves as an upstream business, the fuel shock is cascading through the entire supply chain. In the Mahachai Market, seafood vendor Saowaluk Pengkubhnu reports that sales have dropped by 20 to 30 per cent. “We see getting harder to make a living,” she said.
The downturn is driven by a dual pressure: the cost of harvesting fish has skyrocketed, while consumer demand is plummeting. Local buyers, also struggling with rising energy costs, are tightening their budgets. Nurse Piyathida Chaiyapun, a customer at the Talay Thai Market, noted that she is spending less on seafood specifically to ensure she can afford her own fuel.
For veteran fishers, the current volatility is unprecedented in recent memory. Somporn Auesrichat, who has spent 50 years on the water, described this as the worst period of his career. Boat owner Sombat Rungruangsakorn, 65, noted that the last time he witnessed such astronomical price surges was over 30 years ago during the Gulf War of the early 1990s. According to Rungruangsakorn, once fuel prices climb above $1.30, it is no longer profitable to send vessels out.
The Human Cost of a Fuel-Intensive Industry
The scale of the vulnerability is rooted in the sheer volume of energy required to sustain the fleet. Thai fishing boats consume between 80 million and 90 million litres of fuel per month. Many vessels operate on voyages lasting several weeks, traveling more than 100 kilometres offshore, meaning even a marginal price increase can erase a trip’s profit margin.
The stakes extend beyond the Thai nationals owning the boats. The industry relies heavily on hundreds of thousands of migrant workers, primarily from Myanmar, who face immediate job insecurity as boats remain grounded. Mongkol Mongkoltrirak, director of the Samut Sakhon Fisheries Association, warned that if 80 per cent of fishing vessels remain grounded, approximately 150,000 workers could lose their jobs.
Allegations of Fuel Hoarding and State Response
While the Middle East conflict is the primary driver, local fishermen allege that “unscrupulous actors” are worsening the shortage. There are widespread suspicions that fuel is being hoarded on ships offshore, with suppliers waiting for prices to peak before selling. These concerns are bolstered by reports from the southern port city of Surat Thani, where up to 70 million litres of oil have gone missing.
The Department of Special Investigation (DSI) is currently examining transport records, vessel routes, and suspected ship-to-ship transfers at sea to determine where the fuel went. Justice Minister Police Lieutenant General Rutthapon Naowarat stated that fuel was being unloaded from tankers onto smaller vessels and subsequently disappeared from the legal supply chain.
In response to the mounting anger, the Thai government has implemented two primary measures:
- B20 Expansion: Increasing the supply of B20, a cheaper blend of diesel and biodiesel derived from vegetable oils or animal fats.
- Retail Price Cuts: Implementing a retail diesel price reduction of approximately 9 cents per litre.
However, industry leaders like Mongkol Mongkoltrirak argue these steps are insufficient. He has called for a total waiver of income tax for fishermen this year and the creation of an interest-free recovery fund for those forced to stop fishing. “The price of seafood won’t catch up with the price of fuel, which has increased rapidly in one month,” Mongkoltrirak said.
The Breaking Point: $40 for $9 of Fish
The mathematical reality of the crisis is best illustrated by the experience of Sooksan Kanual. The 50-year-old fisherman recently attempted to “try his luck” by taking his long-tail boat out at 4:00 a.m. In the Tha Chin River.
Five hours later, the result was a financial disaster. Kanual spent nearly $40 on diesel and returned with only $9 worth of fish. “It is not worth it,” he said. “The fuel is so expensive, I can’t stand it anymore. I’ll have to find a job on land. It is the only way to survive.”
The industry now looks toward diplomatic efforts in Pakistan, where peace talks between the U.S. And Iran are currently taking place. While many in the fishing community are unfamiliar with the specific political triggers of the war, they are acutely aware of its cost. The next critical checkpoint for the industry will be the outcome of these diplomatic negotiations and whether the Thai government implements the tax waivers and recovery loans requested by the Fisheries Association.
We want to hear from you. How is the global energy crisis affecting local industries in your region? Share your thoughts in the comments below.
