Energy Ministry Considers 3-Month Biodiesel Support Extensions

Thansettakij•Economy•5d ago

Reader Briefing

The Ministry of Energy is considering extending biodiesel price subsidies every three months to maintain palm oil industry balance.

•The current biodiesel price subsidy under Section 55 will end on September 24, 2026.
•The Ministry of Energy may extend the subsidy measure in 3-month increments.
•B7 and B20 biodiesel formulas remain essential for absorbing domestic palm oil.
•Manas Puttharut of the Federation of Thai Palm Oil Farmers noted the need for balance between farmer prices and consumer cost of living.

Overview

•The biodiesel price subsidy measure from the Fuel Price Stabilization Fund under the provisional Section 55 will end after September 24, 2026.
•Manas Puttharut stated that the Director-General of the Ministry of Energy indicated the most likely approach is extending the subsidy measure every 3 months.
•The Ministry of Energy may implement short-term extensions of 3 months each, which would not require legal amendments as it is an internal policy.
•Proposed extensions will enter the consideration process of the Energy Policy Administration Committee (EPAC) for decision-making in each period.
•B7 and B20 biodiesel formulas continue to play a key role in absorbing domestic palm oil and balancing the palm oil industry system.
•Manas Puttharut noted that a 100% confirmation of the extension is not yet possible because rising palm oil prices would increase biodiesel production costs.
•Short-term 3-month extensions are viewed as a flexible way for the government to reduce shocks to the palm oil industry and prevent energy costs from becoming a burden for consumers and the transport sector.
•The 3-month review mechanism allows the Ministry of Energy to adjust policies to align with market situations promptly.

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Source: Thansettakij (Original)

Key Quotes

Manas Puttharut

"Right now, I am not one hundred percent sure because if palm prices surge, the cost in this part will rise accordingly, but from the past meeting, there were signals from the Director-General that there is a tendency to extend the time every 3 months and consider on a case-by-case basis."

ตอนนี้ยังไม่มั่นใจร้อยเปอร์เซ็นต์ เพราะถ้าราคาปาล์มพุ่งสูงขึ้น ต้นทุนในส่วนนี้ก็จะขยับตัวสูงตาม แต่จากการประชุมที่ผ่านมา มีสัญญาณจากท่านอธิบดีว่ามีแนวโน้มจะขยายเวลาออกไปครั้งละ 3 เดือน และพิจารณาเป็นรายครั้ง

Key Entities

Person

Manas Puttharut(มนัส พุทธรัตน์)

President of the Federation of Thai Palm Oil Farmers and a member of the Palm Oil Balance Management Subcommittee.

Organization

Federation of Thai Palm Oil Farmers(สมาพันธ์ชาวสวนปาล์มแห่งประเทศไทย)

An organization representing palm oil farmers in Thailand led by Manas Puttharut.

Ministry of Energy(กระทรวงพลังงาน)ℹ️

The government body considering the extension of biodiesel subsidies every 3 months.

Fuel Price Stabilization Fund(กองทุนน้ำมันเชื้อเพลิง)

The fund providing price subsidies for biodiesel.

Energy Policy Administration Committee (EPAC)(คณะกรรมการบริหารนโยบายพลังงาน (กบง.))

The committee responsible for considering and deciding on the extension of energy policy measures.

Palm Oil Balance Management Subcommittee(คณะอนุกรรมการบริหารจัดการสมดุลน้ำมันปาล์ม)

A subcommittee involved in managing the balance of palm oil, of which Manas Puttharut is a member.

Law

Section 55(มาตรา 55)

The legal provision under which the biodiesel price subsidy measure is implemented.