Bangkok: The Deputy Permanent Secretary of Energy is advocating for the use of B20 biodiesel, which is priced 5 baht per liter lower than regular gasoline, as a measure to reduce energy costs. This initiative aims to alleviate the financial impact on the public during the Songkran festival.
According to Thai News Agency, Mr. Veerapat Kiattifuengfu, Deputy Permanent Secretary of the Ministry of Energy, conveyed through the Center for Monitoring and Managing the Conflict in the Middle East (CMA) that the Ministry, along with relevant agencies and oil producers, is promoting B20 biodiesel. This biodiesel, which contains 20% B100 biodiesel exempt from taxes, is part of efforts to support businesses in reducing energy costs. The Ministry is closely monitoring palm oil production and collaborating with biodiesel companies, the Office of Agricultural Economics, and the Department of Internal Trade. Interest from the fishing industry has been noted, with sales commencing at various depots, including Phra Khanong and PTT Public Company Limited (PTT OR) at Songkhla and Saraburi, while Shell plans to begin sales in early April.
The global oil market remains unstable, exerting pressure on supply. Despite fluctuations, the Fuel Oil Fund Management Committee (FOMC) reports that marketing margins in March were about 2 baht lower than pre-crisis levels, with only minor increases observed on certain days due to global oil price volatility.
In terms of production and sales, high-speed diesel saw 85 million liters produced, with 82.36 million liters sold, comprising 66 million liters at gas stations and 15 million liters through jobbers for government transport. Gasoline production was 20 million liters, with 32 million liters sold, mainly at gas stations.
Regulations under Article 7 mandate that oil refineries display daily prices and stock levels, reporting to the Department of Energy Business by 6:00 PM. The Department is actively monitoring trader inventories through a stockpile system and physical checks, involving 22 provincial energy offices across 53 oil depots.
Recent law enforcement efforts led to the discovery of illegal oil storage facilities in Phra Nakhon Si Ayutthaya Province, where over 60 tanks and jerrycans containing oil were seized. Legal actions are ongoing.
The Oil Fund is currently facing a deficit, with monthly outflows of approximately 1.3 billion baht to subsidize oil prices, resulting in a deficit of 42 billion baht. The Oil Fund Management Committee (OFMC) is working to support the public during Songkran through various measures, including leveraging the Oil Fund and excise taxes. Thailand currently has a fuel reserve sufficient for approximately 106 days, with ongoing efforts to secure additional supplies.