Petrol phase-out targets ethanol glut

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Petrol phase-out targets ethanol glut

Published: 2/07/2009 at 12:00 AM
Newspaper section: Business

The government aims to clear the ethanol surplus with a controversial policy to phase out regular petrol from the market, a senior Energy Ministry official says.

In 2002, the Thaksin Shinawatra administration granted licences to ethanol producers as part of its policy to replace pure petrol with alternative fuels.

But inconsistent energy policy and frequent changes of government have led to excessive ethanol supply, creating losses for ethanol producers.

Pure petrol has also remained available in the market.

Thailand's ethanol output is 1.3 million litres per day. Current capacity is 2 million litres a day, but is set to increase by another 800,000 litres a day this year.

Premium petrol is now priced about 9.90 to 10.80 baht per litre more than gasohol, depending on the level of the state Oil Fund and excise tax.

Most vehicles can run on gasohol, said the senior official. But many motorists still prefer to use pure petrol, even though the agency has worked to keep gasohol between 3.80 and 4.60 baht per litre cheaper than regular petrol.

"We need to limit their choices otherwise we would never make it happen," said the official. "Some motorists never change their mind as they believe that pure petrol can boost efficiency of engines, while gasohol could lower its efficiency."

Regular petrol consumption has stayed at 8 million litres per day this year despite gasohol being priced much lower, which could mean price is inadequate as a motive for switching. Ethanol consumption is now 1.2 million litres per day.

An additional spur for promoting ethanol is that Energy Minister Wannarat Channukul is a member of Parliament representing Nakhon Ratchasima province, home to Thailand's largest cassava plantations. Cassava is one of two crops used to produce ethanol.

"If he [Mr Wannarat] does nothing to solve the ethanol surplus problem, his votes may decrease in the next election," said the official.

"The policy of phasing out regular petrol was implemented in his term for this reason."

Panich Pongpirodom, director-general of the Department of Alternative Energy Development and Efficiency, said the agency had been trying to make motorists trust gasohol by launching the 100,000- kilometre gasohol test run for passenger cars and motorcycles in 2007.

"I think the result was clear enough to educate those motorists to know that gasohol does not harm their vehicles engines, even models from before 1995," said Dr Panich.

The state agency had also sought co-operation from motorcycle producers in certifying the test results but has yet to receive a response.

Adisak Rohitasune, senior vice-president of Asian Honda Motor Co, the motorcycle market leader, said all four-stroke models could run on gasohol, but most two-stroke motorcycles could not. "So some motorcycle owners, who are mostly on low incomes, would suffer from the decision," he said.

Relate Search: Energy Ministry, Thaksin Shinawatra

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Writer: YUTHANA PRAIWAN

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max muller

Discussion 5 : 03/07/2009 at 01:23 AM5
I always use this gasohol 95, but tell me one reason why I should use this in the future today it costs about baht 30,- per liter, its almost no difference to the normal fuel, so what ? who makes the money with the motorists ? some government agencies and political parties ? ?
Lertsiri Boonmee

Discussion 4 : 02/07/2009 at 07:29 PM4
Sure you can use it! AT YOUR OWN RISKS! Proven by the world's top testers and cars that have tried the gasohol and ethanol use that it is less efficient in use (combustion). It effects the source of food. It places a strain on production of the ethanol which theoretically is more of a burden on resources than a saving in the long term to SAVE THE PLANET. You can't store it for long periods of time in fuel tanks due to evaporation rates higher than normal petrol. You can't tranfer it through normal pipelines and so you have to use more logistics to deliver the fuel from the plants. It eats away at older engine parts. OH and how much cheaper is it at fuel pumps for all this negativity? And is it on the rise which eventually will equal the cost of normal benzene 95 when they actually phase out benzene 95? Questions and statistics that must be analyzed by all especially if we all fill up our vehicles with this stuff.
cleanup

Discussion 3 : 02/07/2009 at 07:18 PM3
"..gasohol does not harm their vehicles engines, even models from before 1995"

Disappointing. Get those old vehicles out of traffic as soon as possible. At the moment the auto industry has plenty of production capacity to make new fuel efficient cars with much better safety. How about a subsidised trade-in deal for old diesel and gas vehicles?
moonoi

Discussion 2 : 02/07/2009 at 04:01 PM2
"Some motorists never change their mind as they believe that pure petrol can boost efficiency of engines, while gasohol could lower its efficiency."

That would be probably because, like me they tried Gasohol and found that fuel efficiency decreased by around 20%, so its actually still cheaper to use premium petrol. My car can also run E20, and I have to say using this the performance is terrible and the engine doesn't run smoothly even though its rated for E20.

These are the reasons Gasohol is avoided, which are that it is infact more inefficient.
savin

Discussion 1 : 02/07/2009 at 02:47 PM1
It's good that Thailand is slowly moving away from petrol, but ethanol alone presents its own problems (such as plant food being used to make fuel instead). What about some long term plans to move completely away from internal combustion engine?

max muller

Discussion 5 : 03/07/2009 at 01:23 AM5

I always use this gasohol 95, but tell me one reason why I should use this in the future today it costs about baht 30,- per liter, its almost no difference to the normal fuel, so what ? who makes the money with the motorists ? some government agencies and political parties ? ?

Lertsiri Boonmee

Discussion 4 : 02/07/2009 at 07:29 PM4

Sure you can use it! AT YOUR OWN RISKS! Proven by the world's top testers and cars that have tried the gasohol and ethanol use that it is less efficient in use (combustion). It effects the source of food. It places a strain on production of the ethanol which theoretically is more of a burden on resources than a saving in the long term to SAVE THE PLANET. You can't store it for long periods of time in fuel tanks due to evaporation rates higher than normal petrol. You can't tranfer it through normal pipelines and so you have to use more logistics to deliver the fuel from the plants. It eats away at older engine parts. OH and how much cheaper is it at fuel pumps for all this negativity? And is it on the rise which eventually will equal the cost of normal benzene 95 when they actually phase out benzene 95? Questions and statistics that must be analyzed by all especially if we all fill up our vehicles with this stuff.

cleanup

Discussion 3 : 02/07/2009 at 07:18 PM3

"..gasohol does not harm their vehicles engines, even models from before 1995"

Disappointing. Get those old vehicles out of traffic as soon as possible. At the moment the auto industry has plenty of production capacity to make new fuel efficient cars with much better safety. How about a subsidised trade-in deal for old diesel and gas vehicles?

moonoi

Discussion 2 : 02/07/2009 at 04:01 PM2

"Some motorists never change their mind as they believe that pure petrol can boost efficiency of engines, while gasohol could lower its efficiency."

That would be probably because, like me they tried Gasohol and found that fuel efficiency decreased by around 20%, so its actually still cheaper to use premium petrol. My car can also run E20, and I have to say using this the performance is terrible and the engine doesn't run smoothly even though its rated for E20.

These are the reasons Gasohol is avoided, which are that it is infact more inefficient.

savin

Discussion 1 : 02/07/2009 at 02:47 PM1

It's good that Thailand is slowly moving away from petrol, but ethanol alone presents its own problems (such as plant food being used to make fuel instead). What about some long term plans to move completely away from internal combustion engine?

Petrol phase-out targets ethanol glut