BAFS seeks removal of Thailand's 4.72 baht jet fuel tax
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- BAFS (Bangkok Aviation Fuel Services Plc) called on the Thai government to exempt jet fuel from the 4.72 baht per litre excise tax, warning the levy undermines aviation competitiveness and inflates operating costs and airfares.
- ML Nathasit Diskul, president of BAFS, said short-haul and international carriers are exploiting tax differences to bypass Thai airports — refuelling in Kuala Lumpur or Singapore where the levy is zero, or Ho Chi Minh City where it is just 1.2 baht per litre, rather than paying Thailand's 4.72 baht.
- ML Nathasit warned Thailand risks falling behind Singapore and Vietnam, which is building several new international airports, if the tax is not reformed — 'occurring as Thailand claims to seek aviation hub status.'
- The Airlines Association of Thailand formally asked the government to cut the jet fuel excise tax in early March as fuel prices surged following the Israel-US war on Iran.
- Thai Lion Air (head of commercial Nuntaporn Komonsittivate) said jet fuel prices have risen 70% since early March, and urged the government to prioritise faster measures like postponing planned operational fee increases at major airports while the tax cut is being considered.
- The jet fuel excise tax was temporarily waived during the pandemic and then reinstated in 2023, and remains one of the largest single expenses for airlines operating in Thailand.
Why it matters: Thailand's 4.72 baht per litre jet fuel levy is already redirecting refuelling traffic to tax-free Kuala Lumpur and Singapore — a direct revenue and hub-status loss for Thai airports. With Thai Lion Air reporting a 70% fuel price spike since early March and carriers threatening to raise airfares, the government faces a near-term cost-of-flying decision that will shape whether Bangkok can credibly compete with Singapore and Vietnam's expanding airport capacity.
