Subsidy framework faces legal limits
An oil palm plantation in southern Thailand. The government is promoting the use of biodiesel B20, a blend of diesel and 20% palm oil-derived methyl ester.
Thailand is accelerating efforts to reduce reliance on imported oil by expanding sales of biodiesel B20, aiming to make the fuel available at 1,000 filling stations within a month.B20, a blend of diesel and 20% methyl ester derived from palm oil, is currently sold at 600 stations nationwide.
Authorities first introduced the fuel on a pilot scale in March but have now shifted to long-term commercial sales, offering it at a retail price of seven baht per litre lower than diesel B7, subsidised by the state Oil Fuel Fund.
Sarawut Keawtathip, director-general of the Department of Energy Business, said 17 car assemblers and manufacturers from Japan, South Korea, China, Europe and the US have certified that B20 does not affect engine performance in many car models.
