The Energy Ministry has decided to postpone the effective date for cutting retail prices for biodiesel B10 and gasohol E20 by one baht per litre from Wednesday to Thursday because the ministry's buildings caught fire on Wednesday, rendering officials unable to conduct a meeting.
The State Oil Fund Administrative Committee previously planned to approve this measure to be effective from Dec 25 to Jan 10.
The fire took place on the third floor of the ministry's energy complex on Vibhavadi Rangsit Road. It was extinguished within one hour.
A source from the ministry who requested anonymity said the effective period will be postponed by one day. The measure will still expire on Jan 10.
The holiday gift scheme has not changed, the source said. This measure during the New Year period is meant to reduce fuel costs for Thais travelling during the long holiday.
Retail prices for B10 and E20 remain at 25.49 baht and 24.24 baht per litre, respectively, for Bangkok and surrounding areas.
"There is no authorisation from the committee and the one-baht reduction will begin on Thursday," the source said.
Energy Minister Sontirat Sontijirawong said the plan was approved by the cabinet last week.
"For B10, the government wants to absorb the surplus of crude palm oil through the biodiesel process, maintaining the price of fresh palm nuts for Thai farmers," he said.
The plan is part of an effort for all petrol stations nationwide to replace B7 with B10 from Jan 1.
The reduced price by one baht is to encourage Thai motorists to use B10.
Petrol stations are expected to expand B10 distribution nationwide by February or March, said Mr Sontirat.
E20 is meant to be a fundamental fuel, he said, and the ministry is considering making a new announcement soon.
The ministry plans to announce new measures to prevent the smuggling of crude palm oil from neighbouring countries and to support future shipments 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 five baht per kilogramme from 2-3 baht previously, while crude palm oil rose from 22 baht per kg to 28 baht."
The price of fresh palm nuts increased to seven baht from four baht in late November, he said.