Agency, traders to discuss E20 plan
The Energy Business Department plans to hold talks with oil traders this week about a mandatory plan to make gasohol E20 the fundamental petrol available at pumps in the near future.
The department was assigned by the Energy Ministry to study the feasibility and impact of gasohol E20 as the main option at pumps, said director-general Nantika Thangsuphanich.
The department reported current consumption of gasohol E20 stands at 8-9 million litres per day.
Last Thursday, Energy Minister Sontirat Sontijirawong said gasohol E20 would be made the primary petrol available at pumps, with gasohol 91 phased out of the market soon.
Gasohol E20 is a mixture of 20% sugar-made or cassava-made ethanol, and 80% fossil fuel, but it is only available at octane 95.
E10 is a mixture of 10% ethanol and it has two octane categories: gasohol 91 and 95.
As a result, there are currently five categories of petrol at stations: gasohol 91, gasohol 95, E20, E85 and premium unleaded gasoline 95. Thailand has four products of diesel: biodiesel B7, B10, B20 and premium diesel.
Mr Sontirat said the government is discussing this plan with all stakeholders.
One category is expected to be phased out because oil traders have higher operation costs installing many oil dispensers at their stations.
“The ministry cannot specify a time frame to implement this mandatory plan,” he said.
The new petrol plan will be unveiled after B10 is made the primary diesel in early 2020, shifting from B7, which will be downgraded to an alternative diesel.
“The transition from B7 to B10 should face no interruptions,” said Mr Sontirat.
Some European cars and old vehicles are incompatible with B10. Thai motorists will be encouraged to use B10 through a subsidy making it 2 baht cheaper per litre than B7.
B20 will be 3 baht cheaper per litre than B7.
Ms Nantika said the owners of European cars and old vehicles should seek advice from their distributors and brands if they want to fill up using B10.
“B10 was introduced in May and had sales of 10,000 litres per day, rising to 65,000 litres per day now,” said Ms Nantika.
“The department forecasts B10 consumption will rise to 57 million litres per day by next June.”
Manoch Munjitjuntra, director and manager for retail sales at Esso Thailand Plc, said the company is
clearing its B7 stock and plans to have B10 available at 30 petrol stations in November.
“We expect B10 to be available at 60 stations by December,” he said.
Biodiesel is blended from methyl ester, purified from crude palm oil (CPO). The Energy Ministry projects B10 can use 2.2 million tonnes per year of its CPO surplus, whereas B7 absorbed only 1.6-1.7 million tonnes.