Biodiesel development plan

Viraphol Jirapraditkul, director-general of the Energy Policy and Planning Office, said that under the Bt75-million project to promote commercial production of biodiesel, which will be carried out by Kasetsart University, palms would be planted, probably on acid land in the Rangsit area.

"This will become part of a community learning centre which is funded jointly by organisations including the Chaipattana Foundation, the Science and Technology Ministry, the Agriculture Ministry, PTT, the Charoen Pokphand Group, and the universities of Kasetsart and Chiang Mai.

By forcing retailers to offer B2 diesel or diesel with pure biodiesel content from February 1, the Energy Ministry aims to promote the fuel as a substitute for oil imports. The ministry earlier announced it was to apply for Cabinet approval to import crude palm oil for biodiesel production.

However, Commerce Minister Krirk-krai Jirapaet, said yesterday that the imports were unnecessary. He said that the current palm oil shortage was a result of hoarding.

"As the agency responsible for the Kingdom's imports and exports, we consider that it is not the right time to import additional palm oil. By February 29, 30,000 tonnes of palm oil will have been imported to ease the shortage.

"Then, new palm kernels would have come onto the market and this would ease the tight supply. If more palm oil is imported, the domestic price could fall sharply," Krirk-krai said.

Oil retailers meanwhile agreed to cut petrol prices and gasohol by 40 satang per litre from tomorrow, due to easing global oil prices.

Dubai crude oil slipped to below US$90 (Bt3,000) a barrel yesterday to $85.01 per barrel, while refined petrol was at $96.82. Consequently, domestic premium petrol would cost Bt32.89 a litre and Bt31.59 for regular petrol. Gasohol 95 will retail at Bt28.89 a litre, gasohol 91 at Bt28.09 and gasohol E20 at Bt26.89. The price of diesel is maintained at Bt29.34.

"This is the second cut in six days," said PTT senior executive vice president Chaivat Churitti. "We are ready to cut prices as soon as our costs drop. However, there are factors that could push global oil prices even higher so consumers should be more careful with their energy consumption."

The Nation