Board cuts the price of ethanol
The National Energy Policy Board yesterday approved an ethanol pricing formula based on Brazil's level.
Taking immediate effect, the formula effectively lowers the price to Bt19.33 per litre, compared with the Bt25.30 price quoted in the latest ethanol purchase agreement. The price will be adjusted quarterly.
The board also approved a pricing formula for biodiesel of Bt24.54 per litre. "The formula is a result of the preliminary agreement between oil retailers and ethanol plant operators. It's meant to be a reference price. However, if the actual price does not move in line with the formula, ethanol and biodiesel prices will remain subject to control," Energy Minister Piyasvasti Amranand said. The Energy Policy and Planning Office will now discuss lower gasohol prices with oil retailers. Piyasvasti is hopeful that the retail price of gasohol 95 can be cut 27.8-30 satang per litre. The price of gasohol 91 price could be slashed 53 satang per litre if its retail price is to be kept at Bt1 a litre lower than the price of octane-91 petrol. If the Bt1.50 gap is chosen, the retail price would be cut by only 3 satang a litre. Meanwhile, the new biodiesel pricing formula will be based on the Internal Trade Department's crude palm oil price, which is updated monthly, plus methanol price. Under the formula, biodiesel prices would stand at Bt24.54 per litre, or Bt2.94 per litre higher. The Oil Fund will be used to subsidise the biodiesel price, to ensure that the marketing fee of biodiesel is 20 satang higher than that of high-speed diesel. The marketing fee for biodiesel will then stand at Bt1.20 per litre. Energy Reporters The Nation
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