The government has joined forces with the private sector to promote B20 biodiesel aggressively. The initiative aims to reduce expensive crude oil imports and support local oil palm farmers amid soaring global energy prices fueled by geopolitical tensions.
To entice motorists and logistics operators, B20 biodiesel, which contains 20% palm oil-based biofuel, is 7 baht per litre cheaper than standard diesel.
Furthermore, the Thai Automotive Industry Association (TAIA) has guaranteed that 1,135 vehicle models across 13 major brands can safely run on B20. This confirms there will be no adverse effects on engine performance or warranties.
Yuphin Boonsirichan, chair of the TAIA has confirmed that drivers of these vehicles who switch to the biofuel will retain their standard vehicle warranties.
Sarawut Kaewthip, director general of the Department of Energy Business (DOEB), stated on Wednesday that escalating geopolitical tensions between the United States, Israel and Iran have severely disrupted crude oil supplies, sending global energy prices skyrocketing.
In response, the DOEB is working with the Department of Alternative Energy Development and Efficiency (DEDE), the TAIA, leading carmakers and major fuel traders to boost public confidence in B20 biodiesel.
Promoting alternative fuels partially produced using domestically grown crops is viewed as a key strategic move to secure the national energy supply and reduce a heavy reliance on imported crude.
Moreover, B20 is a cleaner-burning fuel that helps reduce hazardous air pollution significantly, including PM2.5.
The DOEB enforces strict, internationally recognised quality standards for B20 and conducts regular inspections at service stations to ensure consumer safety and product integrity.
Adisak Choosuk, deputy director general of the DEDE, offered an assurance that Thailand has more than enough raw material to sustain B20 production without threatening food security. According to projections from the Office of Agricultural Economics, the total oil palm fruit output is expected to reach 21.87 million tonnes, yielding roughly 3.94 million tonnes of Crude Palm Oil (CPO).
Domestic consumption and industrial use require around 1.25 million tonnes, while exports account for another 1.20 million tonnes. This leaves a surplus of approximately 1.49 million tonnes of crude palm oil available for the energy sector.
If B20 reaches 10% of the country's total diesel consumption, it will require about 1.23 million tonnes of CPO per year. This fits comfortably within the surplus, meaning local palm supplies are perfectly adequate to feed the biodiesel drive while stabilising prices for Thai farmers.
On the retail front, eight major oil firms, registered under Section 7 of the Fuel Trade Act, have committed to rapid expansion.
B20 is currently available at more than 600 service stations located along major transport routes nationwide.
Fuel traders are aggressively accelerating their rollouts, targeting an expansion to over 1,000 stations within the month, to ensure convenient access for commercial logistics and regular motorists alike.
