Thailand cuts palm oil content in biodiesel to curb rising costs
The Energy Ministry will cut palm oil content from 7% to 5% in biodiesel in response to rising palm oil prices; minister assures car engines will not be affected
The Energy Ministry will reduce the palm oil used in biodiesel fuel from November 21 onwards, turning it to B5 from B7 biodiesel, in the face of rising palm oil prices.
B7 is a blend of 7% palm biodiesel and 93% petroleum diesel, while B5 has 5% palm biodiesel.
Deputy PM and Energy Minister Pirapan Salirathavibhaga said this move was approved at a meeting of the Energy Policy and Planning Office (EPPO) on Thursday and is expected to help reduce the cost of biodiesel.
He assured motorists that switching from B7 to B5 would not negatively impact their vehicles’ engines.
Pirapan added that the ministry has notified the National Palm Oil Policy Committee of the switch.
The rising price of crude palm oil has driven up the retail prices of biodiesel to 48 baht per litre and above.
Since May 1, Thailand scrapped the sale of B10 biodiesel, leaving only two types in the market – B7 and B20.
B7 biodiesel was renamed to just biodiesel, while B20’s name remained unchanged.
