(Bangkok Post) A plan to make gasohol E20 the primary fuel for motorists in July has been postponed indefinitely because of higher biofuel prices, creating a financial burden for the Oil Fuel Fund.
The Oil Fuel Fund Administration Office (Offo), which subsidises gasohol and biodiesel, found prices of ethanol and palm oil-made methyl ester have increased for many years, exceeding even those for pure gasoline and diesel.
Officials want E20, a mix of 20% ethanol and 80% unleaded gasoline 95, to replace gasohol 91, making gasohol 95 an alternative fuel for drivers. Yet the plan has faced several delays.
Gasohol 91 and 95 have a 10% ethanol blend. They differ in their octane rating numbers.
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“We have to delay the E20 plan until biofuel costs decline, with their demand and supply in balance so they do not affect the Oil Fuel Fund,” said Mr Kulit.
E20 was launched as an alternative fuel in January 2008 when the global oil price rose to US$100 per barrel.
Officials support use of E20 because they want to see sugar cane and cassava planters play an increasing role in the domestic oil market. READ MORE