THAILAND: Government seeks to phase out petrol with ethanol
Published: 07/02/2009, 8:22:30 AM
The Thai government aims to clear the ethanol surplus with a controversial policy to phase out regular petrol from the market, according to the Bangkok Post.
In 2002, the Thaksin Shinawatra administration granted licences to ethanol producers as part of its policy to replace pure petrol with alternative fuels.
But inconsistent energy policy and frequent changes of government have led to excessive ethanol supply, creating losses for ethanol producers.
Pure petrol has also remained available in the market.
Thailand's ethanol output is 1.3 million litres per day. Current capacity is 2 million litres a day, but is set to increase by another 800,000 litres a day this year.
Premium petrol is now priced about BHT9.90 (US$0.3) to BHT10.80 per litre more than gasohol, depending on the level of the state Oil Fund and excise tax.
Most vehicles can run on gasohol, said the senior official. But many motorists still prefer to use pure petrol, even though the agency has worked to keep gasohol between 3.80 and 4.60 baht per litre cheaper than regular petrol.
"We need to limit their choices otherwise we would never make it happen," said the official. "Some motorists never change their mind as they believe that pure petrol can boost efficiency of engines, while gasohol could lower its efficiency."