Thailand’s Energy Ministry said it will boost the biodiesel blend in petroleum diesel from 3.5% to 7% starting 16 April.
Petroleum diesel demand in the country was reported at around 60 million litres per day last month.
The latest government mandate will boost biodiesel consumption from 2.2 million litres to 3.7 million litres per day, according to Witoon Kulchroenwirat, director-general of the ministry’s Energy Business Department.
In January, the government reduced the biodiesel mandate to 3.5%, as the country’s palm oil production dropped drastically due to drought and stocks reached a low point of around 110,000 tonnes. The country’s palm oil production has since recovered and now there is an oversupply (palm oil stocks were around 170,000 tonnes in March, well above the target of 135,000 tonnes). The government move should help boost domestic prices of palm oil which will benefit local producers.
Thailand is the world’s third-largest palm oil producer, after Indonesia and Malaysia.