Photo credit: Bangkok Post
Two SET-listed energy companies, Bangchak Corporation and PTT Oil and Retail Business (OR), have resumed commercial sales of B20 biodiesel after nearly four years, supporting Thailand’s efforts to diversify energy sources and reduce dependence on imported oil.
B20 — a diesel blend containing 20% palm oil-derived methyl ester — is being promoted as a more affordable alternative amid volatile global oil prices. It is currently about 5 baht per litre cheaper than the more commonly used B5 diesel.
The relaunch comes as fuel prices rise sharply due to the Middle East conflict, with the government recently approving a 6-baht-per-litre increase in gasoline and diesel prices. The Oil Fuel Fund, which helps subsidise fuel costs, is facing a deficit of 28.1 billion baht, increasing pressure to adopt lower-cost energy options.
Bangchak and OR are initially targeting bulk buyers in the transport, fisheries and industrial sectors, with B20 not yet available at retail service stations. While authorities confirmed subsidies will be provided to support adoption, specific details have not been disclosed.
The move aligns with broader efforts to promote alternative fuels, similar to gasohol blends such as E20, which are already priced lower than traditional fuel options.
Meanwhile, Global Green Chemical (GGC), a subsidiary of PTT Group, is working to enhance the competitiveness of palm oil-based biodiesel. The company is investing in smart farming technologies to improve yields and collaborating with international partners to promote sustainable palm oil practices, aiming to boost product quality, expand market access and reduce environmental impact.