Bangkok: PTT Oil and Retail Public Company Limited (OR) is taking a significant step in compliance with government policy as it prepares to sell B20 diesel, a move aimed at expanding energy options for the transportation, industrial, and agricultural sectors. This new energy option will be sold directly to consumers, rather than through service stations, marking a strategic shift in its distribution approach.

According to Thai News Agency, OR has positioned B20 as an alternative energy source that emphasizes both efficiency and cost-effectiveness. Containing 20% biodiesel derived from palm oil, B20 is produced using domestically grown agricultural raw materials that meet international standards. This makes it particularly suitable for use in large diesel engines found in trucks, buses, industrial machinery, and agricultural equipment. The introduction of B20 is expected to reduce energy costs for operators, support local palm oil farmers, decrease reliance on imported energy, and promote environmentally friendly energy, all of which align with the country's energy security policy.

Currently, both OR and Bangchak have announced plans to sell B20, though the pricing details have yet to be disclosed. The Fuel Fund Office (FFO) recently announced a subsidy for B20 at a rate of 18.94 baht per liter, compared to 16.02 baht for B7, highlighting a minimal difference of 2.92 baht per liter. This development follows a statement by Deputy Prime Minister and Minister of Transport, Pipat Ratchakitprakarn, who had previously indicated that B20 would be 5 baht per liter cheaper than B7. Additionally, the Fuel Fund has reduced subsidies for E10 (Gasohol 95 and 91) to 0.56 baht per liter to bolster the fund's liquidity amid a cumulative deficit exceeding 35 billion baht. The reduction in subsidies aligns with a 6 baht per liter increase in retail fuel prices for all types, effective March 26, driven by the rapid rise in global oil prices due to tensions in the Middle East.