Thailand is set to introduce diesel fuel that meets the Euro 5 environmental emission standard starting January 1 next year, with the pricing structure still under consideration.
According to the Department of Energy Business (DOEB), this initiative offers more environmentally friendly diesel options, including B7 and B20 biodiesel blends, which will be available at petrol stations starting May 1. B7 and B20 are a mix of diesel and 7% and 20% palm oil-derived methyl ester, respectively.
The transition to Euro 5 diesel is expected to increase costs by 0.5 baht per liter, prompting the Energy Policy and Planning Office to develop a new pricing structure. The current government subsidy, which maintains diesel prices below 30 baht per liter, is scheduled to end in December.
DOEB Director-General Nanthika Thangsupanich said oil refineries and traders have confirmed their readiness to produce and sell Euro 5 diesel. Six refineries have already invested 50 billion baht to upgrade from Euro 4 to Euro 5 diesel in recent years.
Nanthika added that petrol stations will continue to sell the current Euro 4 diesel for 3-4 months before completely switching to Euro 5 diesel. Diesel consumption in Thailand has decreased by 5% in the first ten months of this year, averaging 68.5 million liters per day, partly due to reduced usage for power generation.
Thailand’s overall fuel consumption rose 1.3% this year, with major increases in gasoline, gasohol, jet fuel, and liquefied petroleum gas (LPG). However, fuel oil demand declined, and compressed natural gas consumption remained nearly unchanged, supported by a state subsidy scheme. (NNT)
