Oil refiners will be forced to use biodiesel
The Energy Ministry will force all oil refiners to mix biodiesel with diesel, to boost biodiesel consumption by 500,000 to 1 million litres a day.
Energy Minister Piyasvasti Amranand yesterday said the measure would be reviewed by the National Energy Policy Council, and oil refiners could be given a year before the compulsory measure started.Under the measure, diesel would be mixed with 1 per cent or 2 per cent biodiesel and called B1 or B2. "The Oil Fund could step in to subsidise the rising cost of producing biodiesel, now at Bt24 a litre, while the ex-refinery diesel price is only Bt16 a litre. The subsidy could be equal to Bt10 a litre, in order to encourage oil retailers to mix diesel with biodiesel," he said. Only PTT and Bangchak Petroleum sell mixed diesel. With 5-per-cent biodiesel, the B5 fuel is now kept 70 satang a litre cheaper than biodiesel. Piyasvasti said once auto-makers could assure consumers of the safety of the alternative fuel, the ministry could make it mandatory for oil refiners to prepare B5 biodiesel. At that time, the Oil Fund subsidy would be unnecessary. "B5 biodiesel is practical for all diesel engines, but carmakers are still reluctant to guarantee that. The Toyota Group has proposed it would come up with a warranty only when there are six additional measures on biodiesel standards - for example, to cover the ratio of methanol mixture. The ministry is working on the measurement system and monitoring B100 production," he said. Phanthep Chaiprinya, assistant to the claims manager for an auto insurer, said the regular policy specified by the Insurance Department did not cover accidents caused by the deterioration of a car's engine but that adding biodiesel to diesel should not cause any specific problems for cars. - The Nation
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