The Energy Ministry plans to cut retail prices for biodiesel B10 and gasohol E20 by another one baht per litre during the New Year period to reduce fuel costs for Thais during the long holiday.
The campaign will be effective from Dec 25 to Jan 10. At present, B10 and E20 cost 24.09 baht and 23.84 baht per litre, respectively.
Energy Minister Sontirat Sontijirawong said the plan will go to the cabinet for approval soon.
"For B10, the government wants to absorb the surplus of crude palm oil for the biodiesel process and maintain the price of fresh palm nuts for Thai farmers," he said. "The ministry has made a compulsory order for all petrol stations nationwide to sell B10, replacing B7, from Jan 1. The cheaper price by one baht is a campaign to encourage Thai motorists to refill with B10."
Petrol stations are expected to expand B10 distribution nationwide by February or March, Mr Sontirat said.
E20 is meant to be a fundamental fuel, he said, and the ministry is considering making a new announcement soon.
The New Year prices will be subsidised by the ministry via cash from the State Oil Fund, Mr Sontirat said.
The ministry plans to announce new measures to protect against smuggling of crude palm oil from neighbouring countries and to support future shipment of biodiesel B100 in mid-January.
"The government wants to stabilise the price of crude palm oil to help farmers suffering from the surplus output," Mr Sontirat said. "The B10 mandatory announcement increased the price of fresh palm nuts to 5 baht per kilogramme from 2-3 baht previously, while crude palm oil rose from 22 baht per kg to 28 baht."
He said the Energy Regulatory Commission will freeze the fuel tariff (Ft) rate at 3.64 baht per kilowatt-hour for another four months, from January to April, to avoid power prices burdening consumers amid a sluggish economy.
The Ft rate has been maintained for 16 months.
Moreover, the state-run Electricity Generating Authority of Thailand has been ordered to monitor the power distribution system during the New Year period.
Regarding consideration to maintain the price of liquefied petroleum gas, Mr Sontirat said the ministry will proceed with it next year.
In related news, the ministry is reviewing five master plans for 2015-36 in line with the 12th edition of the national economic and social development plan for 2017-21.
The five plans are expected to be concluded next June, Mr Sontirat said. They consist of development plans for power, energy efficiency, alternative energy, oil and gas.