Thailand's diesel export ban threatens industrial growth, FTI warns

Thailand could unlock significant economic gains by lifting its months-long ban on diesel exports, according to the Federation of Thai Industries, which argues the restriction is exacerbating underutilisation across the manufacturing sector. The trade curb, implemented to maintain domestic fuel supplies, has created a surplus that is straining industrial capacity and limiting gross domestic product growth prospects for the year. FTI officials contend that easing the export prohibition would help stabilise the market while freeing production resources currently constrained by the policy. The federation's position reflects growing concern among manufacturers that domestic fuel management measures are inadvertently becoming a drag on broader economic performance. Policymakers face a balancing act between ensuring adequate domestic energy availability and maintaining the competitiveness of Thailand's industrial base, as factories continue operating below optimal capacity levels.