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November 06, 2007 | Jim Lane | Comments 0

Thailand to impose E20 mandate in 2008

Thailand announced plans to mandate E20 blended gasoline in 2008. Thailand’s fuel imports fell 3.7 percent this year to $18.5 billion as the previous E10 mandate took hold.

Last week, the Thai government reduced the price of B5 biodiesel to stimulate demand. The price of B5 biodiesel has been reduced as part of a government-backed plan to encourage more motorists to use the alternative fuel. B5, a mixture of 5% biofuel and 95% high-speed diesel, will now cost 3.18 per gallon, 3 cents less than petroleum diesel. The price reduction was accomplished by reducing taxes on blended biodiesel.

Recently, Thailand increased its biofuel reserve mandate to cope with a 27% increase in E10 usage by Thai motorists. E10 now accounts for 25% of total Thai gasoline consumption. Biodiesel blend consumption has risen 8% in the past month. The Thai energy ministry also said the new reserve mandate would absorb excess ethanol production capacity. Annual consumption of ethanol has increased to 48 million gallons, but it still lags behind the annual production of 86 million gallons.

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