Mostly state-owned energy firm Bangchak Corporation Plc (BCP) expects its new gasohol product and the government's domestic tourism stimulus package will improve its oil sales in the second half of the year, though year-end sales are expected to remain unimpressive.
BCP president Chaiwat Kovavisarach said yesterday oil sales for the first half of the year have yet to be tallied, but monthly sales from March to June dropped by 10%, 20%, 8% and 6%, respectively.
The company earlier estimated 2020 sales would drop about 10%, but with improvements as the Covid-19 pandemic is abating, Mr Chaiwat expects it may resume normal sales growth, between 5-6%, in the second half of the year.
He said the government's plan to encourage people to travel will lead to more use of personal cars because people will still fear catching the virus on public transport.
Mr Chaiwat said he believes many people are eager for trips to tourist attractions after being confined to home for months during travel restrictions and business shutdowns.
This is good news for oil sales, especially E20 gasohol, a mix of 80% benzene and 20% ethanol, which has been promoted by the government, he said.
The Energy Ministry is preparing to make E20 a staple petrol product and turn gasohol 91 and 95, known as E10 for its 10% ethanol, into alternative fuels. It earlier set July as the start date for the new product.
Mr Chaiwat said 35% of petrol-engine vehicles are compatible with E20, but only 15-20% of them use E20. The company debuted E20 gasohol, called "S EVO", for sale yesterday.
BCP has decided to cut the nine oil products offered at its stations to five to curb operation costs. The five are E20, gasohol 95, premium diesel, and B10 and B7, or diesel mixed with 10% and 7% biodiesel.