Thailand Imposes B7 Biodiesel Blend to Absorb Excess Palm Oil

In Thailand, the Energy Ministry's Energy Business Department is raising the proportion of biodiesel blended with high-speed diesel up to 7% (B7) to help absorb excess domestic crude palm (CPO) supply. The new B7 will be available at petrol stations in early August.

Director-general Witoon Kulchroenwirat said increasing the blend would absorb an excess domestic crude palm (CPO) supply. The domestic CPO production had surpassed demand at a time when the global CPO price had dropped due to excessive supply in Indonesia and Malaysia.

The move to raise the proportion of CPO blended with diesel came following a request by the National Palm Oil Board to seek ways of absorbing the excess CPO supply. In the long term, policymakers plan to increase the proportion of CPO to 10-20%. The plan has been in trial testing nationwide since last year in a bid to help cut oil imports.