Energy Ministry to float Ethanol and Biodiesel prices

Ministry of Energy prepares to float prices of ethanol and biodiesel in line with the global market’s demand, adding that it will campaign for Gasohol 91 more aggressively starting at the middle of this year.

Minister of Energy Piyasvasti Amranand (ปิยสวัสดิ์ อัมระนันทน์) said that the ministry will begin adjusting the prices next week. However, the prices will still be subsidized by the oil fund in order to keep retail gasohol prices below Benzene 95 by 1.50 baht per liter and the biodiesel prices below the diesel by 50 Satang.

Mr Piyasvasti expects that the float of prices will stimulate the production of gasohol and biodiesel oils. Revenue from the sale of higher gasohol and biodiesel prices might be enough to pay the entire debt of more than 39 billion baht of the oil fund within one year.

The energy minister said further that beside the promotion of Gasohol 91, the ministry will strictly monitor the quality of biodiesel in order to make car users feel more confident in biodiesel and adjust the formula of biodiesel.

Source: Thai National News Bureau Public Relations Department - 01 February 2007

I assume this means the prices will go up,

removing the incentive to move to these new fuels.

Good thinking, eh!