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Published on July 24, 2007

The carmakers are also being encouraged to fill up new cars with gasohol, said Energy Minister Piyasvasti Amranand.

"Gasohol is now compatible with all new cars, except for some brands that need assurance from foreign headquarters, like Ferrari or Porsche," the minister said yesterday.

Now that most cars can use gasohol, he believes that late this year, the number of service stations serving octane-95 petrol will begin to decline. By year-end, gasohol consumption is expected to increase from 4.8 million litres a day now to 8 million litres.

However, the ministry plans to maintain the price gap between octane-95 petrol and gasohol 95 at Bt3.50 a litre after finding that the difference increased gasohol demand from 3.1 million litres a day last year to 4.8 million litres now.

Thai Automotive Industry Association president Suparat Sirisuwannangkura said that next year, nearly all auto companies would be selling vehicles that can be driven on E20, a gasohol containing 20-per-cent ethanol. These vehicles will enjoy a low 5-per-cent import tariff, effective next January 1. "The Energy Ministry says once these vehicles are out in the market, oil retailers will be encouraged to produce E20," he said.

Gasohol 95 now contains only 10-per-cent ethanol.

Suparat said lower availability of conventional petrol once stations serving octane-95 petrol began to decline would not cause any problems, as only about 10,000 vehicles were unable to use gasohol.