B20 biodiesel push: Anutin urges wider use to cut imports

B20 biodiesel should be used far more widely across Thailand to cut the country's reliance on imported oil, Prime Minister Anutin Charnvirakul told local leaders on Thursday, November 12. He said the fuel is about 10 baht per litre cheaper than regular diesel and asked provincial officials to promote it, especially to tractor operators, the Bangkok Post reported.

The prime minister framed the push as a matter of energy security as well as household savings. He said the government wants to lower energy costs and depend less on supplies from overseas, while helping domestic palm oil farmers earn more.

What is B20 biodiesel?

B20 is a blend of 20% methyl ester made from palm oil and 80% petroleum diesel. Because part of every litre comes from a crop grown in Thailand, each extra litre sold replaces some imported crude.

Mr Anutin said the government had already cut the excise tax on the blend to encourage motorists and businesses to switch.

From six million to ten million litres a day

According to the prime minister, Thailand's daily use of B20 previously stood at around six million litres. He wants that figure to rise to 10 million litres a day.

Reaching that level, he said, would cut oil imports significantly and raise demand for local palm oil. Higher demand should support better prices for growers, which in turn would lift farm incomes.

For readers in the south, the palm oil angle matters, because oil palm is a familiar crop across many southern provinces.

E20 for petrol cars, including older models

The plan is not limited to diesel. For petrol vehicles, the government is encouraging drivers to use E20 gasohol, which contains ethanol made from sugarcane and cassava.

Mr Anutin said he had asked the industry and energy ministers to consult carmakers. According to him, manufacturers confirmed that petrol vehicles aged 15 years or older could run on E20 without harmful effects. The government is also studying whether certain engine parts could be adjusted so that more older vehicles can use the fuel.

The fuel mix has been a live topic in recent weeks. Our earlier report on the future of gasohol 91 and 95 explains the debate over the shift to E20, and pump prices were covered in our story on fuel price cuts that started on November 6.

Solar rooftops and a net-zero target

Alongside biofuels, Mr Anutin outlined a programme to promote solar panels on household roofs. Under the scheme, the government would contribute a subsidy of 50,000 baht towards installation costs.

He said rooftop solar would lower household electricity bills and reduce dependence on conventional energy. Solar and wind power, he added, give the country more energy independence no matter what conflicts happen abroad. The scheme forms part of Thailand's ambition to reach net-zero emissions within 10 years.

"This represents a transition in the energy structure," he said, describing a chance to reduce oil use in industry and increase the use of electricity.

Key points of the B20 biodiesel plan

• B20 costs roughly 10 baht per litre less than regular diesel after an excise tax cut.
• The government wants daily use to rise from about six million to 10 million litres.
• Tractor operators are a priority group for local officials to target.
• Petrol vehicles 15 years or older can use E20, according to carmakers consulted by the government.
• Households could receive a 50,000-baht subsidy towards rooftop solar panels.

Where the prime minister spoke

Mr Anutin, who also serves as interior minister, made the remarks while opening an academic seminar on strengthening local government networks. The event at the Nongnooch International Convention and Exhibition Centre in Sattahip, Chon Buri, drew more than 4,000 senior Interior Ministry officials, provincial governors and presidents of provincial administrative organisations.

He told the audience that provincial planning and cooperation are essential to national development. He also pledged more budget decentralisation and closer work between central and local authorities, which would put provincial leaders at the front of the fuel campaign.

What it means for drivers

For diesel drivers, fleet owners and farmers, the immediate message is about price: a cheaper blend is already on sale and the government wants more people to use it. For owners of older petrol cars, the reassurance on E20 may ease worries about switching fuels.

Global energy markets remain unsettled, as our report on recent swings in oil prices shows. The government is betting that home-grown fuels and rooftop solar can soften the impact of those swings on Thai households and businesses.

Image: B20 biodiesel and E85 pumps at a filling station, illustrating the type of fuel blend Thailand wants more drivers to use. Photo by Mariordo (Mario Roberto Duran Ortiz), CC BY-SA 3.0, via Wikimedia Commons.