Liquefied national gas (LNG) could soon compete with diesel and compressed natural gas (CNG) for fuelling trucks on Thai roads.
The Department of Energy Business aims to allow firms to sell LNG for transport from early next year.
At the same time, the government would stop intervening in the retail price of LNG to liberalise the market.
Director-general Somnuk Bamrungsalee said the department intends to provide an alternative to CNG, particularly for long-distance trips.
"The department expects to grant a licence for LNG retail next year, as another alternative for motorists who currently suffer from long queues at CNG filling stations," he said.
LNG is already popular among motorists in Japan and South Korea, he added.
In Thailand, Shell and Siam Gas Plc have shown interest in retailing LNG but are waiting for clear signals from the Energy Ministry.
Thai LNG imports started in 2011, when they totalled 1 million tonnes, but they are projected to hit 3 million tonnes this year.
"The Thai market is now big enough for LNG retailers and businesses who are interested," said Mr Somnuk.
Deputy director-general Witoon Janwiriyakul said trucks can switch from CNG to LNG by installing a new gas cylinder.
Globally, LNG is cheaper than diesel but slightly pricier than CNG.
In Thailand's domestic market, LNG is expected to be priced according to the Henry Hub, which is the pricing point for natural gas futures in North America.
The department also announced yesterday that B7, a blend of 5% biodiesel and 95% petroleum-based diesel, will officially launch at the start of 2014 to replace B5.
B7 will lift demand for crude palm oil above 4 million litres per day, up from 2.5 million now for B5, according to the department.
Thailand mandated the use of biodiesel in 2008 with B2, followed by B5 in 2011.