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Updated 23 September 2026. Thailand is considering a targeted reduction in fuel excise tax as one option to ease energy-related living costs. Reuters reported on 21 September that the measure under consideration could cover blended biofuels such as E20 and B20. At the time of reporting, no final reduction rate or effective date had been announced.

What has been confirmed?

• The proposal is still under consideration, not a completed across-the-board fuel tax cut.
• E20 and B20 were specifically mentioned as possible targets.
• The government has also been using other tools, including the Oil Fuel Fund and refinery-price measures. A Thai Government update says the ex-refinery price for B0, B7 and B20 diesel was reduced by THB 4 per litre from 16 September to 31 October 2026 to cushion retail-price pressure.

What could this mean for construction?

Fuel costs do not move every construction item by the same percentage. The most direct exposure is generally in material delivery, earthmoving and other fuel-intensive machinery. Indirect exposure may appear in materials whose production and distribution rely heavily on energy.

TPSO reported that Thailand’s Construction Materials Price Index for August 2026 was 113.1, up 6.1% year on year. The official release shows substantial differences between categories: concrete products rose 9.6%, electrical and plumbing materials 12.7%, and other construction materials 15.7%, while cement fell 0.2% and steel products fell 0.6%. This category dispersion is why a blanket percentage adjustment can misstate a project budget.

GDC cost-control approach

1. Identify BOQ cost codes with actual transport, diesel or machinery exposure.
2. Request current supplier and haulage quotations with validity dates.
3. Update the Price Book only for confirmed changes.
4. Recalculate affected BOQ sections and compare the result with the previous cost per square metre.
5. Require approval before changing a customer-facing price.

GDC analysis: The construction-cost observations above are Greenery Design & Construction’s analytical framework, not conclusions issued by Reuters, TPSO or the Thai Government. Actual costs vary by design, specification, location, delivery distance and construction schedule.

Sources

• Reuters report republished by CNA: Thailand considering oil tax cut (published 21 September 2026; accessed 23 September 2026)
• Royal Thai Government: 2026 diesel price-support measures (published 21 September 2026; accessed 23 September 2026)
• TPSO: Construction Materials Price Index, August 2026 (accessed 23 September 2026)
• TPSO: Full August 2026 economic price-index documents (accessed 23 September 2026)