AreaThailand

Commodity GroupBiofuels

CommodityBiodiesel

Date01/05/2018

Policy CategoryRenewable energy

Policy InstrumentBiofuel policy

DescriptionAnnounced plans to raise mandatory blending of palm oil-based biodiesel in the country’s automotive and railway sectors from 7 percent to 10 percent, with a view to supporting domestic palm oil prices.

NotesWith a view to support oil palm growers affected by depressed prices (stemming from burdensome domestic supplies), the Government of Thailand is planning to raise mandatory blending of palm oil-based biodiesel in the automotive and railway sectors from 7 percent to 10 percent. Performance tests of the higher blends are currently being conducted with support from the industry. According to the press, the shift to the higher blending rate is envisaged for early next year. In recent years, the country has seen repeated adjustments in mandated rates – both upward and downward – as the Government strived to stabilize domestic palm oil prices (see MPPU Sep.’16, Aug.’17 & Jan.’18).