Thailand promotes the use of B20 biodiesel with subsidies

The Thai government is accelerating the introduction of B20 diesel fuel as a strategic energy alternative to reduce costs in the transportation and industrial sectors due to the unfolding energy crisis caused by the escalating conflict in the Middle East, reports the Pattaya Mail.

Aide to the Prime Minister, Rachada Dhnadirek, stated that B20 diesel fuel blended with a 20% palm oil-based biodiesel additive will provide a solution to the domestic raw material shortage issue and called for the use of diesel fuel as standard, benefiting from lower fuel costs and greater reliance on local energy sources.

To encourage fuel use, the Government Executive Committee introduced a price subsidy, making B20 gasoline approximately 5 baht per liter cheaper than standard B7 diesel.

Major fuel retail chains are also expanding B20 gasoline distribution to improve availability. Bangchak Corporation has commenced sales at its warehouse in Phra Khanong, while PTT Oil and Retail Business has commenced sales at its warehouses in Songkhla and Saraburi. Shell is expected to begin distribution in early April.

This initiative is expected to boost demand for palm oil, the country’s key agricultural crop, helping stabilize prices and provide income for Thai farmers. It will also reduce long-term dependence on energy imports.

The Deputy Minister reaffirmed the government’s commitment to ensuring access to fuel for both households and businesses.

Tags: Thailand, palm oil, biofuel