AreaThailand
Commodity GroupBiofuels
CommodityBiodiesel
Date01/06/2017
Policy CategoryRenewable energy
Policy InstrumentMarket regulation / biofuel policy
DescriptionUrged 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.
NotesThe 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).
