Area
Thailand
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/06/2017
Policy Category
Renewable energy
Policy Instrument
Market regulation / biofuel policy
Description
Urged retailers of palm oil-based biodiesel to raise their stocks of the fuel by 40 percent so as to help absorb excess palm oil supplies and lend support to domestic palm oil prices.
Notes
The Government of Thailand periodically implements measures to stabilize the domestic price of palm oil in a bid to support producers or consumers. According to media reports, in June 2017, the Government invited retailers of (palm oil-based) biodiesel to increase their stocks of the fuel by 40 percent so as to help absorb excess palm oil supplies and support domestic prices. Reportedly, during the recent production peak the price of palm oil tumbled, hurting farmers. The Governments stock-holding proposal is expected to help absorb an additional 76 000 tonnes of palm oil from the market. To support farmers, the Government also raised the floor price for palm fruit to 4.30 THB per kg (USD 126 per tonne), which, reportedly, has helped to keep the market price for crude palm oil at around THB 23 per kg (USD 674 per tonne).
