Local oil refineries expect to successfully market their new environmentally friendly diesel that meets the Euro5 environmental emission standard, which took effect on Jan 1, says the Federation of Thai Industries (FTI).
Euro5, which will replace its predecessor Euro4, will be applied to bio-diesel B7 and B20, which are blended with 7% and 20% palm oil-derived methyl ester, respectively.
Petrol stations will be allowed to sell Euro 4 diesel, which is currently used by motorists, for 3-4 months before it is completely replaced by Euro 5 diesel, according to the Department of Energy Business.
Oil companies which are members of the FTI are ready to sell their new oil products, said the FTI's Petroleum Refining Industry Club.
They allocated a combined budget worth more than 50 billion baht to upgrade their oil refineries and expand refinery capacity, the club said.
Bangchak Corporation Plc has been producing oil with low sulphur content that meets the Euro5 standard since December last year.
The company has reduced the sulphur content to less than 10 parts per million as well as improving the quality of the oil, the club said.
Bangchak has also reduced the sulphur level in gasoline, with the aim of selling oil that generates less pollution.
Thai Oil Plc, the country's largest oil refinery by capacity, is building a new oil refinery facility under the Clean Fuel Project (CFP).
Under the CFP, the company wants to increase its oil refinery capacity to 400,000 barrels a day, up from 280,000 barrels a day, and upgrade fuel oil to products with a higher value, including diesel and jet fuel, Bandhit Thamprajamchit, chief executive of Thai Oil, said earlier.
Thai Oil will increase production of oil that meets the Euro5 standard and reduce the production of fuel oil, which is usually used in the sea transport segment.
The CFP development, which requires a budget of US$4.8 billion, got underway in 2019.
Thai Oil's new oil refinery began partial commercial operations last year.
An official at the Department of Energy Business, who requested anonymity, said the authorities are still discussing what should be the appropriate price of Euro 5 diesel.
Oil refineries said earlier that Euro 5 diesel would incur an additional cost of 0.5 baht per litre. This prompted the Energy Policy and Planning Office to work on a new diesel price structure.