replace biodiesel B3 with B4 during July-September

BANGKOK, 21 June 2011 (NNT) – The Committee on Energy Policy Administration (CEPA) has resolved to replace biodiesel B3 with B4 during July-September this year in a bid to solve the oversupply of palm oil in the market.

Permanent Secretary for Energy Norkhun Sitthipong announced that CEPA had given a green light to the temporary distribution of biodiesel B4 in place of B3 from July to September as proposed by the National Palm Oil Policy Committee. The measure is part of an effort to ease the current flood of crude palm oil in the market.

At present, the stock of raw palm fruits stands at 9.2 million tons while that of crude palm oil is at 1.54 million tons. However, 850,000 tons of crude palm oil is being used for household consumption and another 340,000 tons in the energy sector, leaving up to 350,000 tons in excess.

Meanwhile, EPPO Director-General Suthep Liumsirijarern stated that on 1 October this year an energy price restructuring plan would be implemented. He said conclusion would be drawn within July on whether it would be better to freeze energy prices or allow them to move in line with the global prices. The conclusion will be forwarded to the new government for consideration accordingly.