Crude palm ratio in B7 to rise
The Energy Ministry aims to increase the blended proportion of crude palm oil in biodiesel from 7% to absorb the surplus of palm oil.
The retail biodiesel is called B7, with methyl ester (ME) produced from crude palm oil blended with the fuel.
Kulit Sombatsiri, the ministry’s permanent secretary, said it is considering increasing the ME content in biodiesel following an order from Energy Minister Siri Jirapongphan.
Mr Kulit said the new fuel would be called B7 plus, blended with 7.2-7.3% ME.
The ministry still needs to talk with many stakeholders on this matter, such as oil traders and car assemblers, he said.
The new biodiesel will be mandatory at every filling station, said Mr Kulit.
“As there is a palm oil surplus in the local market, prices have slumped to 2.5 baht per kilogramme, the lowest level this year,” he said. “The surplus is also affecting other countries where palm oil is a major crop.”
Mr Kulit said the price decline started from four baht/kg in May.
Commerce Ministry reported palm oil had a surplus of 300,000 tonnes this year.
The ministry has encouraged truck operators to use B20, blended with 20% ME, since July, expecting B20 consumption at 3 million litres per month.
“But this policy cannot absorb the entire surplus of palm oil,” he said.
The Energy Business Department reported B20 consumption in old trucks is undergoing a trial project for a volume of 7.7 million litres.
The Transport Ministry aims to use B20 for public buses operated by two stateowned enterprises, Transport Co and the Bangkok Mass Transit Authority.
“Two state-owned bus operators will implement this plan from next Friday,” he said.
The State Railway of Thailand also had a test run of for diesel locomotives with the B10 blended with 10% ME, but the project could not absorb the huge volume of palm oil.
Separately, Mr Kulit said the ministry is considering revamping state’s budget allocation to support any energy policymaker projects that aim to develop both renewable and fossil fuels.
The new budget allocation will be initiated in the 2019 fiscal year, which began on Oct 1, but the ministry aims to finalise the plan within November.
Mr Kulit said each budget disbursement must be appraised or have clear results for expenditures.
“Spending must be easily traced,” he said. “The new direction for budget allocation will be set under the ministry’s long term plan.”
The revamp programme is also set to improve working transparency in the ministry as well.
Mr Kulit was moved from the Customs Department to the position of directorgeneral, effective from this month.