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Business >> Saturday June 28, 2008
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ENERGY

New E85 to meet standards

YUTHANA PRAIWAN

Gasohol E85 sold in Thailand will meet international standards, according to Metta Buntherngsuk, director-general of the Department of Energy Business.

He said the international standard for local production of E85 had been drafted to prepare for the commercial launch of new flex-fuel vehicles (FFV) in the next few months.

''The car companies really need this standard, otherwise they can't ensure car buyers that this E85 can be filled in fuel tanks without harmful effects on engines,'' he said. ''To create the market for a new fuel, both cars and fuels have to be ready to serve each other.''

Energy Minister Poonpirom Liptapanlop and Finance Minister Surapong Suebwonglee are hoping to introduce E85, a blend of 85% ethanol and 15% premium petrol, by October.

Car companies will initially import FFVs to serve demand, with General Motors and Volvo expected to be the first to test the market. Volvo already imports one E85 model, the C30 1.8F.

Major car assemblers in Thailand have told the Energy Ministry that they would need 18 to 24 months to develop production lines for FFV models.

The fuel standard was considered in collaboration among energy policy planners, oil producers and automobile companies. The effective date of the mandatory standard will be officially announced once the government's measures supporting locally made FFVs are clear.

Mr Metta said the Energy, Finance and Commerce ministries would also discuss the possibility of reducing the excise tax of 2.57 baht a litre for E85 fuel.

Automobile companies and oil traders gathered to request that the government reconsider the excise tax last week, saying it should be cut to 0.55 baht per litre as the fuel contains only 15% petrol.

The majority state-owned oil companies, PTT Plc and Bangchak Petroleum, will spearhead the launch of E85 with 15-20 dispensers in their stations in Bangkok. The new facilities cost between one and two million baht per station.


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