The Energy Ministry plans to increase biodiesel content in diesel to 7% by next January from the current 5% in a bid to curb the surplus of palm oil.Energy Minister Pongsak Raktapongpaisal yesterday said his ministry has discussed the matter with car makers and oil firms as they prepare for the launch of the B7 biodiesel blend.
Cars in Thailand can accept B7 already, but manufacturers have voiced concern about the reliability of palm oil production.
To fulfil the 7% blend, an extra 25,000 tonnes a month of crude palm oil is needed on top of the current 62,500 tonnes.
In March, the energy giant PTT Plc kicked off a three-month trial of B7 in 10 buses of the Bangkok Mass Transit Authority.
Car makers and petroleum firms have also been told to prepare for the eventual launch of B20 or second-generation biohydrogenated diesel.
Thailand's total supply of crude palm oil hit 310,000 tonnes last month, dropping the price of fresh palm fruit to 2.90 baht a kilogramme from 3.02 baht a year earlier.