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Published on October 19, 2007

The Energy Ministry has confirmed it will not order a halt to the supply of 95-octane petrol to fuel stations around the country.

It will instead allow market mechanisms to curtail its sales.

The decision follows a dramatic increase in gasohol consumption, which is currently exceeding 5.2 million litres a day.

Bangchak Petroleum, meanwhile, has announced a reduction in its supplies of 95-octane petrol. The company says the fuel will be available at only a few service stations in the Silom area by the end of the year.

Bangchak also announced the development of a new alternative fuel called "diesohol", which it expects to result in increased demand for ethanol.

Energy Ministry deputy permanent secretary Kurujit Nakornthap said the ministry had campaigned successfully for increased use of gasohol. Daily demand had risen from 3.1 million litres in February to 5.25 million litres at present.

He said the ministry had also urged all fuel companies to launch 2-per-cent biodiesel products from next April. However, two companies - PTT and Bangchak - are already selling 5-per-cent biodiesel with a combined volume of nearly 2 million litres a day and have received good feedback from consumers.

Metta Banturngsuk, director-general of the ministry's Energy Business Department, said the government's energy policy focused on free -market mechanisms rather than control measures.

"We've decided not to abolish the supply of 95-octane petrol, because we believe the fuel companies will give up selling it themselves if the public turns to gasohol," he said.

Thai Ethanol Manufacturing Association president Sirivuthi Siamphakdee said the association wanted the government to look at the total national picture in encouraging the development and use of alternative energies.

"Ethanol producers are now suffering a surplus problem, because the government previously encouraged the setting up of ethanol factories by saying it would stop sales of 95-octane petrol. It later abandoned that policy, and this has resulted in today's surplus of ethanol," he said.

Sirivuthi said Thailand's total production capacity was 1.15 million litres of ethanol per day, while current demand amounted to only 520,000 litres a day.

Bangchak president Anusorn Sangnimnuan said his company's sales of gasohol amounted to more than 38 million litres a month, while sales of 95-octane petrol were only 1 million litres a month.

The Nation