AreaThailand

Commodity GroupBiofuels

CommodityBiodiesel

Date01/11/2019

Policy CategoryRenewable energy

Policy InstrumentBiofuel policy

DescriptionAnnounced the shift, on 1 January 2020, in mandatory biodiesel blending from B7 to B10 (i.e. transport diesel including, respectively, 7 percent and 10 percent of palm oil-based diesel). The move was aimed at stabilizing domestic palm oil prices, reducing airborne dust emissions, and reducing the country’s mineral oil imports. Domestic biodiesel sales would continue to benefit from subsidies.

NotesTHAILAND – biofuel policy: As a result of the shift in mandatory blending from B7 to B10 (i.e. transport diesel with a bio-content of, respectively, 7 percent and 10 percent) in January 2020, the country’s biodiesel industry is expected to absorb 2.2 million tonnes of palm oil – or two thirds of domestic production – annually. Besides helping to stabilize palm oil prices, the Government’s biofuel policy is expected to reduce airborne dust emissions and help the country save on mineral oil imports. Official sources confirmed that domestic sales of B10 and B20 would be subsidized (see also MPPU July’19).