Thai Energy Ministry Puts Off Use Of B5 Diesel

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Energy Ministry Puts Off Use of B5

The energy ministry has put off the mandatory sales by petrol pumbs of B5 diesel to mid 2011 due to a drastic fall in palm oil outputs.

Energy Minister Wannaut Charnukul said his ministry's mandatory requirement on the sale of B5 diesel has been put on hold until mid 2011, due to a fall in the output of palm oil.

The original date which petrol stations were required to carry B5 diesel was mid January.

The supply of palm oil, the main raw material used to produce B5 diesel, has been weakened as a result of recent severe floods.

Wannarut explained that the present supply of palm oil is not sufficient to feed market demand, while its reservation stock for this year has dropped from last year's 130,000 tons to 70,000 tons.

Director of the Bio Fuel Development Bureau Prapon Wongthareo said the sharp fall in palm oil output has had a more severe impact on palm oil made for consumption than on the production for bio diesels.

Prapol said production for consumption requires 900,000 thousand tons a year, while the production for bi-diesel requires only 380,000 tons a year.

He expects the National Palm Oil Policy will approve the import of palm oil to increase its reservation stock for domestic consumption purposes.

He noted that the Energy Ministry has emphasized that the output of palm oil used for the production of B5 diesel must come only after a surplus from consumption.

-- Tan Network 2011-01-06