Bangchak to pay more for used vegetable oil

The price has been lifted from Bt16 per kilogram to Bt17, in line with higher retail prices for vegetable oil, said president Anusorn Sangnimnuan.

Bangchak has increased the number of service points where consumers can sell their used vegetable oil from five to 26 in Bangkok and surrounding provinces. The company is also buying used oil at fresh markets.

"Our main objective is to reduce the re-use of used vegetable oil, which can cause health problems. The programme will also reduce the release of used oil into public water channels," Anusorn said.

Bangchak has also linked up with the Bangkok Metropolitan Administration to buy used vegetable oil from the kitchens of 80 schools.

The used oil becomes a raw material in the production of biodiesel at a refinery in Sukhumvit Soi 64. Bangchak is capable of producing 20,000 litres of biodiesel per day and is investing in a research and development centre at Ayutthaya's Bang Pa-in district aimed at increasing its production to 300,000 litres per day.

The purchasing of used vegetable oil began last year at a price of Bt12 per kilogram. The price was raised to Bt16 in the middle of last year to give

consumers an incentive to sell. Bangchak now buys about 20,000 litres of used vegetable oil per month. It also buys used oil in bulk from food factories.

Bangchak is selling gasohol E20, a mix of 20-per-cent ethanol and 80-per-cent petrol. Its current sales volume is 200-300 litres a day, up from 100 litres last month.

"The volume is tiny compared to 1,000 litres a day of gasohol 95 or 91. However, this should rise in line with the number of new cars because most newly launched vehicles are compatible with E20," Anusorn said, adding that the distribution of E20 should be running "at full stream" in a year.

Biodiesel and other alternative fuels are becoming popular because of high oil prices.

Anusorn said global oil prices should remain stable this week and this should help local oil retailers to maintain their domestic prices throughout the week.

"The marketing fee is at a comfortable level of Bt1.30 per litre for 95-octane and 91-octane petrol and Bt1.10 for diesel," he said.

The Nation