Oil prices in Thailand and Vietnam surge dramatically, residents say: "Can't afford to buy fuel, can only ride bicycles. 'Even if I want to sell my car, no one will buy it because I can't afford to use it'!" Chinese electric vehicles are booming.

Since the outbreak of the conflict between the U.S. and Iran, the global oil transport artery, the Strait of Hormuz, has faced disruptions, leading to severe turbulence in the international crude oil market and skyrocketing oil and gas prices. As emerging market countries heavily reliant on energy imports, Thailand, Vietnam, and others have very limited strategic reserves of crude oil, severely impacting their economic production.

Thailand, Vietnam see surging oil prices

Public: Can’t afford fuel, must ride bicycles

According to reports, Thailand’s Fuel Fund Management Committee (FFMC) approved a reduction in fuel price subsidies for diesel and gasoline on March 25, with retail prices of various fuels rising by 6 baht per liter starting on the 26th.

By the morning of the 26th, gasoline prices had risen by 14% to 22%, and the price of diesel, a pillar for Thailand’s transportation, agriculture, and industrial sectors, had increased by 18%.

On March 22, Zhang Ya (a pseudonym), a Chinese resident in Bangkok for over ten years, watched the news on her home television: “Currently, Thailand’s oil reserves are sufficient, and relevant departments are speeding up efforts to resolve transportation issues; the public should rationally view the adjustment of oil prices.”

However, Zhang recalled that on March 17, the Thai government announced that oil prices would rise the next day, and some areas even saw queues for fuel. She was late that day and couldn’t refuel, finally managing to fill her vehicle’s tank five days later.

At a gas station in Bangkok, a sign reads “No Diesel” (Image source: Every Day News).

On the 25th, Vietnam’s Ministry of Industry and Trade released figures showing that the price of diesel in the country has more than doubled since the outbreak of the U.S.-Iran conflict at the end of February, rising from 19,270 Vietnamese dong per liter (approximately 26,350 Vietnamese dong per dollar) to 39,660 Vietnamese dong per liter.

Additionally, the price of 95 gasoline in Vietnam rose by 68%, from 20,150 Vietnamese dong per liter to 33,840 Vietnamese dong per liter. Many citizens complained that they “can’t afford fuel” and had to use bicycles for transportation. A 54-year-old vendor, Nguyen Van Tri (phonetic), told AFP reporters that he hasn’t driven in two weeks, saying, “The price of diesel is so outrageous that I want to sell my truck, but there are no buyers because no one can afford it.”

Earlier this month, the Vietnamese government announced a reduction in some fuel import tax rates. On the 24th, the Ministry of Finance proposed halving the environmental surcharge rates on oil and gas. Vietnam has recently sought to expand more oil and gas import channels, reaching out to oil-producing countries like Qatar, Kuwait, and Algeria for assistance. Earlier this week, Vietnamese Prime Minister Pham Minh Chinh visited Russia to seek cooperation, and the two sides signed an intergovernmental agreement on the cooperation to build Vietnam’s first nuclear power plant. According to Russia’s state atomic energy corporation, the project plans to construct two VVER-1200 nuclear reactors with a total installed capacity of 2,400 megawatts at the Ninh Thuan 1 Nuclear Power Plant in Vietnam.

In Melbourne, Australia, Chinese courier Li Wei (a pseudonym) said that the first thing he does every morning is check oil prices on his phone.

“The diesel at the gas station near my house has risen to 2.9 AUD per liter (about 14.1 RMB), which was less than 2 AUD a month ago,” Li said in a recent interview with the Daily Economic News. He calculated that a driver delivering packages travels nearly 400 kilometers daily, and now spends about 40 AUD (approximately 193.3 RMB) more on fuel each day than before the price increase, meaning he has to deliver an extra 20 packages daily to cover the additional fuel costs.

Has the “spring” of electric vehicles in China arrived?

According to media reports, at the 47th Bangkok International Motor Show, which opened on Wednesday, electric vehicles from China attracted significant attention as consumers are gradually shifting away from internal combustion engine models due to soaring fuel prices and concerns over fuel shortages.

At the auto show, Chinese brands like BYD and NIO showcased several new models, drawing interest.

NIO’s smart electric sub-brand, Firefly, appeared with an independent booth, officially launching the right-hand drive model in Thailand with a price of 799,000 baht (approximately 169,047 RMB). Meanwhile, BYD unveiled four new energy models at once, becoming one of the highlights of the exhibition.

At BYD’s showroom in Perth, Australia, sales consultant Xina (a pseudonym) recalled on social media that since the outbreak of tensions in Iran, her store has seen a significant increase in orders, with daily sales exceeding ten vehicles, resulting in longer waiting times for delivery, and she has a long list of customers waiting for their vehicles.

The reporter noted that following the escalating turmoil in the Middle East, Chinese automotive brand dealerships worldwide have been busy. Reports indicate that at a BYD dealership in the Philippines, the order volume over the past two weeks has reached the level of a typical month.

Vietnam’s largest electric vehicle company, VinFast, anticipates that rising fuel prices and global geopolitical tensions will support long-term demand for electric vehicles, and the company will accelerate its expansion plans and strengthen charging infrastructure. Media reports indicate that in Hanoi, VinFast had to hire more sales staff due to a surge in showroom visitors since the U.S. and Israel launched military strikes against Iran, selling 250 electric vehicles in three weeks.