In Thailand, observers say that the government needs to clarify the excise tax that will be imposed on E85, so that manufacturers can plan production volumes of flex-fuel cars, to avoid an ethanol glut. Currently, there are 11 ethanol refineries in Thailand with a combined capacity of 212 Mgy, but existing demand without E85 is 77 Mgy. The government announced in January that it would support the introduction of E85 and flex-fuel engines with tax incentives.
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