On January 21, 2025, Thailand’s cabinet approved a carbon tax of THB 200 per ton of carbon emissions on petroleum products, including gasoline, gasohol, kerosene, jet fuel, diesel biodiesel, liquid petroleum gas, and fuel oil, aiming to reduce greenhouse gas emissions.

Integrated into existing excise taxes, this practice ensures no additional financial burden on consumers. For example, the excise tax on unleaded gasoline remains THB 6.5 per liter, with the carbon cost included.

This approach encourages oil companies to manage carbon costs while promoting environmental responsibility without harming economic stability.