The price of diesel will fall below 28 baht per litre after energy officials decided to reduce the proportion of palm oil-derived methyl ester to only 7% and postponed the 10% and 20% methyl ester blended diesel from next month to March 2022.
Biodiesel B7 is a mix of diesel and 7% methyl ester, part of the state’s efforts to reduce dependence on oil and support palm oil prices.
The reference price of methyl ester stands at 46.88 baht a litre while the ex-refinery price of biodiesel B7 is 20.3 baht a litre.
More methyl ester in biodiesel means a higher oil price at a time of the global oil price surge.
The Energy Policy Administration Committee (EPAC) decided that oil retailers would sell only biodiesel B7.
The move will lower the price of diesel in Bangkok and its vicinity to less than 28 baht a litre, said Wattanapong Kurovat, director-general of the Energy Policy and Planning Office (Eppo).
“We have discussed with truck operators and the business sector before making the decision and they are okay with this measure,” he said.
EPAC, chaired by Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow, also resolved to have oil traders maintain the oil trade margin at no more than 1.4 baht per litre, down from 1.8-2 baht per litre.
Mr Wattanapong said retail prices of B7, B10 and B20 range between 28.59-28.8 baht a litre, with subsidies from the fuel fund at 1.99, 2.56 and 4.8 baht a litre, respectively.
Under the sales of single grade biodiesel B7, the subsidies will fall to 2.95 billion baht a month, down from 4 billion baht a month, from Dec 1.
In another development, Eppo yesterday announced plans to add 1 gigawatt of electricity produced by clean energy resources between 2021 and 2030 in line with the state plan to reduce carbon dioxide emissions.
The 1GW additional electricity includes an increase of power imports from hydroelectric plants in neighbouring countries to 2,766 megawatts, up from 1,400MW in a previous plan.
Electricity from wind energy and waste-to-energy power plants will also increase.
However, electricity from solar energy, biomass and biogas will be reduced.
Gas- and coal-based power generation will also be reduced, with electricity from coal-fired power plants to fall to zero, down from 600MW.
In the next 10 years, the proportion of renewable energy used to produce electricity will increase to 26% of total fuels, up from the current 23%, said Veerapat Kiatfuengfoo, Eppo’s deputy director-general.
- Diesel prices hiked for 13th consecutive week
- Petrol and diesel prices at the pumps are predicted to fall and this is why
- MOL raises diesel prices, now 15% higher than in February
- Stocks close flat on rising oil price, falling foreign markets
- Russian stocks mixed on high oil price, falling ruble
- What is Asda’s petrol price today, why have they cut prices and will it get even cheaper?
- House price rises in Yorkshire are outpacing London
- Asda, Morrisons and Sainsbury's all dropping petrol prices
- Asda, Morrisons and Sainsbury's cut the price of petrol
- Petrol prices reduced at Asda, Sainsbury's and Morrisons
- Fuel retailers should cut petrol price by ‘at least 3p a litre’
- Asda, Sainsbury's and Morrisons all slash petrol prices
- Sainsbury's to cut petrol prices
- Motorists stung with fuel price rises for eight months over year
- Soaring fuel prices may be coming to an end
- Rics calls for stamp duty cuts as house price growth falls to 3%
- The Cactus (NYSE:WHD) Share Price Is Down 29% So Some Shareholders Are Getting Worried
- Cities where house prices are actually now cheaper than before the recession
Diesel price to fall after change of blend have 589 words, post on www.bangkokpost.com at November 25, 2021. This is cached page on Auto News. If you want remove this page, please contact us.