Energy committee restricts options to biodiesel B5

Energy committee restricts options to biodiesel B5

The Energy Policy Administration Committee (Epac) has announced that petrol stations will sell biodiesel B5, a mix of diesel and 5% methyl ester derived from palm oil, but will no longer offer biodiesel B7, starting this Saturday.

Although the diesel price remains unchanged, the decision is intended to ease the government’s financial burden amid soaring global oil prices. The government had put a cap on diesel prices at 30 baht a litre since October last year.

According to Epac’s estimates, biodiesel B5 will be sold domestically until the end of March this year.

The mix of diesel with methyl ester aims to reduce dependence on oil and support palm oil prices. However, authorities will need to reduce the proportion of methyl ester as prices of both diesel and methyl ester have increased.

The reference price of methyl ester, also known as purified biodiesel, or B100, currently stands at 57.28 baht a litre, while the ex-refinery price of high-speed diesel is 24.71 baht a litre, according to the Energy Policy and Planning Office (Eppo).

Methyl ester was priced at 46.88 baht a litre in November last year.

On Monday night, a meeting of Epac, chaired by Energy Minister Supattanapong Punmeechaow, agreed to reduce the proportion of methyl ester to 5%

As global oil prices remain at high levels, the reduction will help the state Oil Fund, said Mr Supattanapong. The Oil Fund is supported by 20 billion baht in loans from commercial banks as it subsidises the diesel price cap. 

Epac had earlier postponed the offering of 10% and 20% methyl ester blended diesel, forcing fuel retailers to sell only biodiesel B7 from Dec 1 last year to March this year.

For the sale of biodiesel B7, subsidies would fall to 2.95 billion baht a month, down from 4 billion a month, according to Eppo.

Do you like the content of this article?
COMMENT (1)

China's tourism sector hails sudden policy shift on zero-Covid, but lockdown scepticism remains

The night China announced it would ease some of its most controversial coronavirus controls, Shanghai resident Yu Yuan immediately booked a high-speed train ticket to Beijing for a New Year's trip.

15:47

Army hospital first stop for freed athlete Griner

American basketball star Brittney Griner was headed back to the United States on Friday after being released from a Russian prison in exchange for Victor Bout, an arms dealer known as the “Merchant of Death”.

15:42

Energy forecast

Energy consumption expected to increase by 3.2% next year, and a new National Energy Plan that emphasises a swing to use of renewable energy and reduction of greenhouse gas emissions.

15:10