Bangkok:The Fuel Regulatory Commission (FRC) has announced a significant reduction in the price of B20 and E20 fuels, setting them at 33.50 baht per liter for a duration of three months.
According to Thai News Agency, the Energy Policy and Planning Office (EPPO) revealed that this price reduction is a result of the Cabinet's resolution to lower taxes, making B20 and E20 fuels 8-10 baht cheaper than B7 diesel and Gasohol 95. This adjustment is designed to bring fuel prices closer to pre-crisis levels and to provide dual benefits—lowering living costs for the public while boosting the income of palm oil, sugarcane, and cassava farmers.
The Fuel Fund Management Committee (FFMC) approved an adjustment in the fuel fund rate, following the Cabinet's decision to reduce the excise tax on B20 biodiesel and E20 gasoline by over 5 baht per liter for three months. Effective from October 28, 2026, the retail price for both fuels is set at 33.50 baht per liter. This makes B20 10.04 baht per liter cheaper than B7 diesel, and E20 8.54 baht per liter cheaper than Gasohol 95. The revised pricing is a significant relief compared to the increased costs experienced during the energy crisis triggered by the conflict in the Middle East.
Aside from easing fuel prices, this measure supports Thai farmers by increasing domestic demand for palm oil, sugarcane, and cassava, which are integral to the production of B20 and E20 fuels. By encouraging the use of these fuels, the government aims to reduce oil imports, channel money back into the local economy, and enhance energy security according to national policy objectives.
Further details on the Fuel Fund adjustments reveal a reduction in the subsidy rate for B20 diesel by 2.58 baht per liter to 5.86 baht per liter, and for E20 gasoline by 3.75 baht per liter to 2.08 baht per liter. Additionally, the Cabinet's resolution reduces the excise tax on E20 gasoline and B20 biodiesel by significant margins, leading to a decrease in their retail prices and easing the Fuel Fund's subsidy burden amid high global oil prices.
Despite these changes, the Fuel Oil Fund (FONF) continues to maintain retail prices of other fuel types at current levels due to ongoing global market volatility. The fund is currently absorbing a subsidy burden of approximately 287.11 million baht per day, with global market prices remaining elevated.
Finally, the government advises vehicle owners to verify compatibility with B20 or E20 fuel types to ensure engine safety before refueling, as this initiative seeks to mitigate living and production costs across various sectors, including transportation and agriculture.