BANGKOK, April 22 (Xinhua) -- Thailand's industrial confidence weakened in March as surging energy prices and supply chain disruptions linked to escalating tensions in the Middle East put pressure on production costs, data showed on Wednesday.
The Thai industrial sentiment index dropped to 88.6 in March from 90 in February, as all components of the index fell, according to the Federation of Thai Industries (FTI).
The reading was based on a survey of 1,311 entrepreneurs across 48 industry groups under the FTI.
The federation attributed the decline to disruptions in the Strait of Hormuz, which have pushed up global oil prices and freight costs while adversely affecting Thai shipments to the Persian Gulf region.
By the end of March, domestic diesel prices soared 36 percent compared to the previous month, adding a significant strain on the transport, agriculture, and industrial sectors, while fuel shortages in some areas hampered local economic activity, the FTI said in a statement.
The index forecast for the next three months stood at 95.9 in the March survey, down from 97.4 a month earlier, as entrepreneurs remained concerned over the prolonged Middle East tensions.
These ongoing conflicts could further disrupt supply chains and logistics, affecting Thailand's manufacturing and tourism industries, the FTI said.
The group called on the government to consider reducing excise taxes on fuel, utilize the Oil Fuel Fund mechanism to stabilize diesel prices, and strengthen enforcement against fuel hoarding and unjustified price increases.
It also pushed for faster implementation of energy-saving measures such as pool logistics and backhauling management systems. ■
