Thailand reduces B5 price to stimulate demand

In Thailand, the government reduced the price of B5 biodiesel to stimulate demand. The price of B5 biodiesel has been reduced as part of a government-backed plan to encourage more motorists to use the alternative fuel. B5, a mixture of 5% biofuel and 95% high-speed diesel, will now cost 3.18 per gallon, 3 cents less than petroleum diesel. The price reduction was accomplished by reducing taxes on blended biodiesel.

Recently, Thailand  increased its biofuel reserve mandate to cope with the new B2 mandate which takes effect in April 2008, and a 27% increase in E10 usage by Thai motorists. E10 now accounts for 25% of total Thai gasoline consumption. Biodiesel blend consumption has risen 8% in the past month. The Thai energy ministry also said the new reserve mandate would absorb excess ethanol production capacity. Annual consumption of ethanol has increased to 48 million gallons, but it still lags behind the annual production of 86 million gallons.

Thailand has also recently increased palm oil cultivation aimed at increasing biodiesel production. Thai ethanol blend consumption rates are among the highest in the world.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Thailand to impose E20 mandate in 2008

Thailand announced plans to mandate E20 blended gasoline in 2008. Thailand's fuel imports fell 3.7 percent this year to $18.5 billion as the previous E10 mandate took hold. Last week, the Thai gove...

Thailand copes with biodiesel demand as oil prices climb: police ask residents to donate cooking oil

In Thailand, police units are expanding a program to encourage donations of used cooking oil to provide fuel for the police fleet. The project, which commenced in May with three stations, provides bio...

Thailand chops E85 excise taxes in bid to reduce oil imports by $3.3 billion

In Thailand, the government announced that a biofuels incentive package that reduces the excise tax on E85. The government said that the incentives, combined with the launch of E85 at 50 stations cont...

Thailand’s biodiesel consumption rises 1900 percent in 2007; ethanol up 63 percent

In Thailand, consumption of biofuels is soaring. It was announced that B5 consumption grew 1900 percent over the previous year to 17 million gallons for the month, while E10 consumption grew 63 percen...

Thailand’s PTT to market E20, offer $0.75 per gallon discount to unleaded gasoline, in bid to reduce oil use

In Thailand, PTT said it will supply E20 blended fuel to its customers, and price the fuel at a $0.75 per gallon discount to regular unleaded gasoline. The move is designed to stimulate use of ethano...

Thailand E85 tax incentive confusion has stymied flex-fuel car makers planning: ethanol glut looms as E85 takeoff delayed

In Thailand, observers say that the government needs to clarify the excise tax that will be imposed on E85, so that manufacturers can plan production volumes of flex-fuel cars, to avoid an ethanol glu...