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F.T.I. asks Energy Minister to consider Euro 5 quality improvement costs

Bangkok, F.T.I. asks the Energy Minister to consider the Euro 5 quality improvement cost after refineries invest a total of 50 billion baht to produce oil to help reduce the amount of PM2.5 and help reduce dangers to people's health. Thai Reporters reported that on December 28, 2023, Mr. Kriengkrai Chiannukul, Chairman of the Federation of Thai Industries (F.T.I.), wrote a letter to Mr. Peeraphan Saleerathaviphak, Deputy Prime Minister and Minister that Ministry of Energy Regarding the kindness of adjusting the price at the refinery from improving the quality of fuel according to the Euro 5 oil standard, which has been effective as a mandatory standard in the country since 1 Jan. 2024, it is improving the quality according to Cabinet resolution on October 1, 2019, which is one of the action plans to drive the national agenda. 'Solving the problem of fine particulate matter pollution (PM 2.5)' sets out to raise the quality standards of gasoline-gasohol groups. and high-speed diesel from Euro 4 to Euro 5 by r educing sulfur from not higher than 50 to not higher than 10. milligrams per kilogram which every oil refinery A total of 50 billion baht has been invested in improving oil quality. The FTI president stated that every refinery has invested in improving the quality of oil to Euro 5 within 4 years from the date of the announcement. In order to keep up with the government policy that has been set. amidst many challenges and changes in the world Especially the fluctuations in oil prices and the spread of the COVID disease. This is considered another important piece of government work. It has a higher capital and production cost than the current Euro 4 standard production, which includes investment and improvement of the refining system. Adjusting the type of crude oil to a low sulfur type to enter the refining process, therefore, the refinery group has a need to improve the criteria for calculating prices at the refinery according to conditions and mechanisms. Therefore, we request permission to consider adjusti ng the price of oil to reflect the standards and quality of fuel to be in line with the oil market in the region that is connected to the world market. Refinery Group FTI reports that Euro standards (Euro) are standards specifying vehicle emissions in countries in the European continent, abbreviated from "Euro emissions standards", which were first established in 1970. 1970) to set emissions standards for vehicles that use combustion fuel. Do not exceed the specified standard value. This is in addition to setting engine standards. Fuel quality standards are another thing that is determined along with engine standards. The Euro 1 oil standard was first announced in 1992 along with the control of automobile exhaust emissions to control the amount of carbon monoxide emissions ( CO), hydrocarbons (HC), nitrogen oxides (NOx), small particles and dust (PM2.5). There have been announcements to raise Euro oil standards continuously until now in European countries, the United States, and even countries in the region . Asia, such as China, Singapore, or Malaysia, has begun enforcing Euro 5 oil standards to solve the problem of PM2.5, which comes from many causes, including forest fires and burning forests for agriculture. Construction from drilling Electricity production and industrial operations from various industrial estates by burning petroleum and coal to use as fuel to produce electricity. Transportation from exhaust fumes and incomplete combustion of engines and other activities such as smoking, lighting incense sticks, burning paper, etc. Therefore, the Euro 5 oil standard has the main requirements to control it: sulfur content. Aromatics and hydrocarbon compounds Reduce emissions to the environment Can help reduce the impact on public health to a certain extent. There are references to European countries, America or Singapore having improved air quality after strict enforcement of emissions standards. Thailand has always raised the standard of oil. The Euro 1 oil standard began to be enforced since 1996 and is currently the Euro 4 oil standard from 2012 onwards, as shown in Table 1. In addition, the government sector is committed to correcting and reducing the impact of The PM2.5 problem has since been established as a national agenda that has received cooperation from all sectors. Emphasis is placed on bringing it to a practical level and reducing health impacts from air pollution. And one of the management guidelines is that the Cabinet has approved an action plan to drive the national agenda. 'Solving the problem of fine particulate matter pollution (PM2.5)' on October 1, 2019, sets out measures to prevent and reduce pollution at the source. Including sources from vehicle exhaust. By specifying measures to raise the standard of emissions from new cars from Euro 4 to Euro 5 and raise the quality standards of gasoline-gasohol groups. and high-speed diesel from Euro 4 to Euro 5 by reducing the sulfur content from not higher than 50 to not higher than 10 milligrams per kilogram (10 ppm) effective from January 1, 20 24 onwards, and group oils Diesel will have to raise its quality standards further. Reduce the amount of polycyclic aromatic hydrocarbons (PAHs) from not exceeding 11% to not exceeding 8%, as shown in Tables 2 and 3, respectively. which the petroleum refinery industry group The Federation of Thai Industries (Group, Refinery, etc.) has complied with the requirements for enforcing Euro 5 oil standards by investing in improving and increasing production efficiency. Using a total investment of more than 50,000 million baht and accelerating the process to be completed within 4 years from the date of the announcement in accordance with the regulations of the Department of Energy Business. In order to keep up with the government policy that has been set. Amidst the many challenges and changes in the world Especially the spread of the COVID-19 virus. Oil price fluctuations and changing the form of energy use, such as electric vehicles, etc. The refinery group has invested in construction and improvement of the prod uction unit until it is ready to sell Euro 5 standard fuel from January 1, 2024 onwards. It has higher production costs and expenses than producing Euro standard oil. 4 At present, due to investment in improving the refining system and adjusting the type of crude oil to low sulfur type to enter the refining process, therefore, the adjustment of the selling price should reflect the improved quality standards of the fuel. and is in line with the regional oil market that is connected to the world market. Create sustainable energy security and supports the use of Euro 5 standard fuel to help reduce the amount of PM2.5 in the air and carcinogenic substances that are harmful to public health and the environment as well. Source: Thai News Agency