The country is struggling to contain a third wave that has seen a jump of more than 32,000 cases since an outbreak was detected in the capital's nightlife district.
Mandatory mask-wearing and restrictions on daily life have done little to slow the rising death toll, with Prayut's leadership coming in for criticism for failing to bring the outbreak under control.
Thailand has also been slow in vaccinating its population compared to regional neighbours, inoculating just 1.2 million people since its roll-out started two months ago.
On Tuesday, the cabinet passed a resolution transferring the portfolios of several ministers to the premier, placing Prayut in charge of laws ranging from the Arms Control Act to the Computer Crimes Act.
The latter is a controversial law critics say broadens the scope of the government's surveillance and censorship powers.
The move allows Prayut "the permission, approval, order and command to help in preventing, correcting, suppressing, and deterring an emergency situation", said an announcement in the Royal Gazette, a government website that publishes new legislation.
Authorities said the new powers were aimed at tackling the health crisis.
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