Plan to make E20 fundamental petrol
The Energy Ministry plans to promote gasohol E20 as the fundamental petrol in the third quarter in a bid to become the first country in Asia to use ethanol as a core fuel.
This enforcement will make E20 available at every petrol station nationwide. At present, there is no fundamental petrol. E20 is an alternative to gasohol E10 (91 and 95) and E85.
Some petrol stations do not provide E20, E85 or premium petrol.
By September, the ministry will terminate E10, which is gasohol 91, leaving only gasohol 95 at petrol stations.
Energy Minister Sontirat Sontijirawong said the moves are aimed at aligning with biodiesel, which has become the fundamental diesel in the retail fuel market.
Biodiesel B10 became the fundamental diesel at the start of this month, replacing B7. The ministry aims to increase crude palm oil use in order to establish appropriate prices of palm oil.
After the enforcement of B10, the price of fresh palm nuts has risen above 7 baht per kilogramme, versus 1.80 baht two years ago.
Gasohol uses ethanol extracted from cassava and sugar cane. E20 is 20% ethanol blended with 80% unleaded petrol.
The Energy Ministry plans to promote E20 for use by motorists. At present, E20 is 3.01 baht cheaper per litre than gasohol 95 and 2.74 baht cheaper than gasohol 91.
"The ministry will talk with many stakeholders to seek more attractive incentives to encourage E20 consumption," Mr Sontirat said.
Roughly 6.5 million litres of E20 are consumed a day, accounting for 22% of all petrol consumption.
The country has 3.3 million E20-compatible cars out of a total registration of 5 million cars.
Motorcycles compatible with E20 number 14.7 million out of 20 million motorcycles registered.
"This means that more than 66% of cars and 70% of motorcycles are compatible with E20, but motorists prefer to use gasohol 91 and 95," Mr Sontirat said.
Gasohol 91 and 95 consumption total 9.6 million and 14 million litres per day, respectively.
"The ministry aims to nearly double E20 consumption to 12 million litres after the enforcement and expand ethanol usage to 7 million litres per day from 5.9 million," Mr Sontirat said.