Bangkok:The Ministry of Energy has clarified that it has not yet discontinued gasoline 91/95, and is currently employing pricing strategies to encourage the adoption of E20 fuel, which is intended to aid Thai farmers.
According to Thai News Agency, energy spokesperson Mr. Pongpol Yodmuangcharoen addressed rumors about the planned discontinuation of Gasohol 91 and 95, stating that the information was not accurate. He explained that while there is a long-term framework under consideration, it aligns with the policy of Mr. Ekanat Promphan, the Minister of Energy, to reduce fuel imports and increase domestic energy reliance. The possibility of making E20 the standard gasoline is being studied as a potential first step to address Thailand's fuel price issues.
Mr. Pongpol highlighted that Thailand imports approximately 90% of its crude oil needs, with over 400 billion baht spent in the first four months of this year alone. Annually, the country's energy import value is around 1.24 trillion baht. He emphasized the importance of reinvesting the billions spent on imports back into strengthening Thai farmers and ensuring sustainable fuel prices. He acknowledged concerns about engine performance with fuel changes but noted that car manufacturers typically provide reassurance, enabling users to adapt.
Mr. Pongpol also compared Thailand's biofuel usage with other countries. Brazil, the leading sugar exporter, uses E32 gasoline, while Indonesia, the top palm oil producer, uses B50 diesel. In contrast, Thailand, the second-largest sugar exporter and third-largest palm oil producer, currently uses E10 and B7 as base fuels. Transitioning to E20 as the base fuel could reduce gasoline demand by over 700 million liters of crude oil annually, saving about 15 billion baht, which would benefit sugarcane and cassava farmers.
Recent trends indicate positive shifts, with Thais increasingly adopting E20 and B20 fuels, spurred by government promotions. Current usage statistics show 8.29 million liters of B20 and 6.72 million liters of E20 consumed daily. Mr. Pongpol noted that E20 is approximately 8 baht/liter cheaper than Gasohol 95, despite a slight reduction in travel distance.
Finally, Mr. Pongpol suggested that the transition to E20 as the standard fuel should be driven by price incentives rather than mandatory measures. He stressed the importance of a gradual implementation, listening to all stakeholders, and providing alternatives for vehicles that do not support E20. The focus should remain on improving farm yields to reduce biofuel production costs, thereby ensuring affordability and efficiency for consumers and benefiting small-scale farmers.