BANGKOK SEATIZENS – Thailand’s Energy Ministry will introduce measures to mitigate the cessation of biofuel price subsidies in 2027. With subsidies ending, biofuel costs will rise, impacting palm and sugar cane growers. Farmers sell crops to factories producing ethanol from sugar cane and methyl ester from palm oil, blended with gasoline and diesel.
ACCORDING TO THAIGER – Currently, ethanol and methyl ester prices surpass refined oil, leading the government to subsidise biofuels through the state Oil Fuel Fund to encourage use.
Energy Minister Pirapan Salirathavibhaga warns of cost increases for biofuel-blended oils post-subsidy. Pirapan proposes collaboration between the Energy and Industry ministries to draft new legislation for palm oil, aiding palm growers in adapting to rising methyl ester prices. He suggests benefits similar to the Sugar Cane and Sugar Act.
Energy Ministry to Form Joint Panel on Biofuel Subsidy Phase-Out
The Energy Ministry will set up a joint panel with officials from two ministries within two weeks to collaborate on biofuel measures. Meanwhile, energy officials reported ethanol and methyl ester prices at 32.32 and 35.35 baht per litre this month, respectively, compared to gasoline and diesel at 20 to 21 baht per litre. Consequently, the government has subsidised biofuels to lessen the financial burden of oil imports.
Moreover, while originally not aimed at assisting farmers, the policy indirectly benefited them. Therefore, the Energy Ministry’s initiative aims to balance economic and environmental objectives while addressing financial challenges in key agricultural sectors amid evolving energy policies, reported Bangkok Post.
Additionally, this initiative seeks to provide a sustainable solution to the energy crisis, ensuring that both the economy and environment are safeguarded. Furthermore, by implementing these measures, the government demonstrates its commitment to supporting agricultural sectors and promoting cleaner energy sources.
(BEAM CHAYAPON)
