The ongoing conflict in the Middle East, coupled with the blockade of the Strait of Hormuz, has severely impacted Thailand’s fishing sector, a crucial part of the country’s economy worth billions. Numerous fishing vessels are currently immobilized on land, unable to operate due to skyrocketing diesel prices, which have more than doubled since the onset of the conflict.
Industry experts warn that over 100,000 fishermen may face unemployment, with the repercussions likely affecting millions of people connected to the fishing industry. Captain Wongduen Meesamrong returned to port in the Gulf of Thailand after a 15-day fishing expedition only to discover that the price of diesel had surged from 83 cents to approximately $2.22 per liter, a cost that is untenable for many in the fishing community.
As he unloaded crates of squid and small fish in Samut Sakhon, Thailand’s largest fishing port, he expressed his dismay: “I’ll have to stop working for a long time. The fuel price is so high. We can’t go out. We’re in big trouble. People all over the sea are feeling it.”
In Samut Sakhon, both fishermen and seafood sellers report that customers are spending less due to rising costs in other areas, which has led to a decrease in demand for their products. Seafood vendor Srinual Malithong noted, “I can tell that people don’t want to go out,” reflecting a broader trend of reduced consumer spending since the outbreak of war in the region.
Fisherman Somporn Auesrichat described the current situation as the most challenging period in his five decades of fishing. “But we must adjust to live with it… the sea is the lifeblood that sustains the fishers,” he stated. Meanwhile, nurse Piyathida Chaiyapun mentioned that she is cutting back on her spending to manage her fuel costs.
With thousands of fishing boats stuck at docks, many owners can no longer afford to operate their vessels. Boat owner Sombat Rungruangsakorn lamented, “It has become too expensive to operate. I can only pray the war will stop.” Saowaluk Pengkubhnu, a seafood vendor, reported that her sales have dropped by 20 to 30 percent, complicating her ability to make a living.
Experts indicate that the repercussions of this crisis could extend to millions, as the fishing industry is interconnected with multiple sectors. Each month, Thailand’s fishing boats consume around 80 to 90 million liters of fuel, with many journeys lasting weeks and reaching over 100 kilometers offshore. A small increase in fuel prices can drastically affect operational viability.
Mr. Sombat recalled experiencing similar price spikes during the Gulf War in the early 1990s. He emphasized that once fuel prices exceed $1.30, sending out boats becomes unprofitable, threatening not only the livelihoods of fishermen and their families but also the hundreds of thousands of migrant workers from conflict-ridden Myanmar who are employed in the industry.
The crisis has been exacerbated by allegations of fuel hoarding, with fishermen suspecting that some fuel supplies are being withheld as suppliers anticipate further price increases. Reports indicate that around 70 million liters of oil have gone missing from Surat Thani, prompting the Department of Special Investigation to investigate potential mismanagement and illegal transfers.
In response to growing frustration among fishing businesses, the Thai government announced efforts to increase the availability of B20, a less expensive fuel blend made from diesel and biodiesel. Additionally, the government has begun to reduce retail diesel prices by approximately 9 cents per liter, though this has not been well-received by fishermen who argue that such a decrease will have minimal impact on their costs.
Mongkol Mongkoltrirak, director of the Samut Sakhon Fisheries Association, pointed out that seafood prices will not adjust quickly enough to match the rapid rise in fuel costs. He warned that if over 80 percent of fishing vessels remain inactive, around 150,000 workers could lose their jobs. Mongkol is advocating for the government to consider waiving income taxes for fishermen this year and to establish a recovery fund offering interest-free loans to those affected by the crisis.
