Producers fume over fuel traders refusing to buy B100 biodiesel
The Thai Biodiesel Producers Association said on Friday that it planned to submit a complaint to related authorities regarding fuel traders under Section 7 of the Fuel Trade Act for refusing to buy B100 biodiesel from palm oil producers.
Section 7 traders are operators with trade volume exceeding 100,000 tonnes per year for each type of fuel or in all types altogether. Large traders that fit the criteria include companies such as PTT Plc and Bangchak Corporation.
The association cited the Energy Ministry’s announcement dated June 20, which urged Section 7 traders to buy B100 biodiesel from producers at the prices set by the Energy Policy and Planning Office, in a bid to help palm farmers from plummeting palm prices, in line with the government’s policy.
“By refusing to buy the B100 biodiesel, these companies are deliberately circumventing the Cabinet’s resolution, resulting in a negative impact on the price structure of upstream and downstream palm products,” said the association.
“We cannot let this exploitation of palm farmers and the society go unpunished. It must be dealt with immediately and decisively to set an example for other traders,” it said.
The association added that the complaint would be addressed to Agriculture and Cooperatives Minister Thammanat Prompow, who chairs the government’s committee responsible for palm oil prices. It will also be forwarded to the prime minister, the commerce, finance, and energy ministers, urging the government to withhold subsidies provided to Section 7 traders who refuse to buy B100 biodiesel.
