Thailand Restarts B20 Sales as Biofuel Push Accelerates

Two Thai-listed energy companies, Bangchak Corporation and PTT Oil and Retail Business, have resumed commercial sales of B20 biodiesel after nearly four years, signaling a renewed government push toward alternative fuels. B20, a blend of diesel with 20% palm-based methyl ester, is positioned as a cost-effective option amid volatile oil prices, priced about 5 baht/liter cheaper than B5.

The move reflects growing fiscal pressure and energy security concerns. Thailand recently raised gasoline and diesel prices by 6 baht/liter, while its Oil Fuel Fund faces a deficit of 28.1 billion baht, underscoring the urgency of cheaper alternatives. B20 is targeted at transport, fisheries, and industrial users, and is currently available only via bulk sales rather than retail stations.

Meanwhile, Global Green Chemical is working to improve the competitiveness of palm-based biodiesel through smart farming and sustainable palm initiatives.

Overall, Thailand is adopting a dual strategy of reducing fossil fuel subsidies while promoting biofuels, which may boost palm oil demand, though subsidy clarity and end-user adoption remain key uncertainties.