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Thai Oil Fund to cover difference

A source from the Thai Energy Ministry said that the next meeting of the National Energy Policy Committee will ask for the Oil Fund’s financial help in keeping the price differential of biodiesel B5 and diesel fuel at 70 satang (US$0.70) per liter. The excise tax cut will narrow the difference to 50 satang (US$0.50), which may reduce biodiesel demand. To shoulder this burden, the Oil Fund would need to pay out two million baht (US$59,098) a day. The difference of 70 satang (US$0.70) is attributed to the sharp increase in biodiesel B5 consumption from 4.5 million liters per day (lpd) in January to 10 million lpd at present. (July 23, 2008)