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The Energy Ministry has been urged to formulate clearer policies to promote alternative energy, as the lack of clarity is causing problems for business operators, consumers and the entire economy.

 At a seminar entitled "Effects from Automobile Use of E20, E85, Biodiesel, NGV and LPG", PTT Aromatics and Refining president Chainoi Puankosoom said he agreed with such a policy, because that would reduce oil imports. However, frequent changes and a lack of supporting plants has resulted in refineries not knowing how to adjust their refining capacity in line with the lower demand for oil products and export volume.

 He also attacked the government's policy of keeping the LPG price below market level, saying the cheap price promoted consumption in vehicles and forced PTT to import the pricey gas for cheap sale. For every million tonnes of LPG imported per annum, government compensation amounts to Bt24 billion a year.

Meanwhile, to promote NGV, the government keeps its price below market level. While PTT has had to shoulder about Bt7 billion so far this year, the government also loses Bt14 billion for the excise duty cut on the gas.

 "This directionless policy makes us burn up valuable items and import expensive ones," he said.

 Auto expert Pattanadesh Asasappakij said the government needed a clear road map of which fuels they wanted to promote for which vehicles, as that would give consumers a clear choice.

 Boonsong Kerdklang, deputy director-general of Alternative Energy Efficiency and Development Department, admitted the government could not clarify which fuel was right for which vehicle, because that involved several parties - auto-makers, refineries and ethanol producers. In a free market, promotion would then rely on market demand, while the state focused on fairness and safety standards.