Thai Palm Oil Crisis: Biodiesel Subsidy End and CPO Surplus Risk

Thansettakij•Economy•18d ago

Reader Briefing

The end of biodiesel subsidies on September 24, 2026, may cause a surplus of over 2 million tons of crude palm oil in Thailand.

•The Fuel Fund Act 2019 will impact biodiesel subsidy mechanisms starting September 24, 2026.
•A potential decrease in biodiesel demand could push approximately 1 million tons of CPO back into the consumption and industrial markets.
•The Office of Industrial Economics is organizing the PALM OIL × OLEOCHEMICAL EXECUTIVE FORUM 2026 – BANGKOK on August 10, 2026.
•Experts propose diversifying into Oleochemicals and using DNA sequencing and POME technology to increase value and yield.

Overview

•The Fuel Fund Act 2019 deadline on September 24, 2026, may end traditional biodiesel subsidy mechanisms.
•Dr. Burin Sukphisan warns that without subsidies, biodiesel prices may exceed diesel prices, reducing demand for Crude Palm Oil (CPO).
•Thailand may face a surplus of over 2 million tons of palm oil if the energy sector cannot absorb CPO as before.
•An increase in stock levels could pressure the entire supply chain and reduce the income of palm farmers.
•The Office of Industrial Economics will host the PALM OIL × OLEOCHEMICAL EXECUTIVE FORUM 2026 – BANGKOK on August 10, 2026, at the Prince Palace Hotel.
•The industry is looking toward Oleochemicals as a new market to absorb surplus production.
•Experts including Dr. Ravigadevi Sambanthamurthi, Mr. Nathan Lakey, and Ms. Yu-Leng Khor will present on genetics, DNA sequencing, and economic risks.

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Source: Thansettakij (Original)

Key Quotes

Dr. Burin Sukphisan

"If biodiesel is more expensive than diesel and blending biodiesel makes the fuel price consumers pay higher, the key question is "who will choose to fill it?""

หากไบโอดีเซลมีราคาสูงกว่าดีเซล และการผสมไบโอดีเซลทำให้ราคาน้ำมันที่ผู้บริโภคต้องจ่ายสูงขึ้น คำถามสำคัญคือ "ใครจะเลือกเติม"

Key Entities

Person

Dr. Burin Sukphisan(ดร.บุรินทร์ สุขพิศาล)

Bio-economy expert, former qualified member of the National Palm Oil Policy Committee, and academic for the House of Representatives committee on land, natural resources and environment.

Dr. Ravigadevi Sambanthamurthi

An expert in genetics and waste utilization presenting on increasing palm oil yields.

Mr. Nathan Lakey

President and CEO of a synthetic biology and palm oil company specializing in DNA sequencing to increase yield.

Ms. Yu-Leng Khor

An expert from Singapore analyzing economic dimensions, climate risks, and palm oil prices.

Law

Fuel Fund Act 2019(พ.ร.บ.กองทุนน้ำมันเชื้อเพลิง พ.ศ. 2562)

The law governing the fuel fund that impacts the direction of domestic palm oil use.

Organization

National Palm Oil Policy Committee(คณะกรรมการนโยบายปาล์มแห่งชาติ (กนป.))

The policy-making body for palm oil in Thailand.

House of Representatives(สภาผู้แทนราษฎร)ℹ️

The legislative body where Dr. Burin Sukphisan serves as an academic for a specific committee.

Thansettakij(ฐานเศรษฐกิจ)

The media outlet that interviewed Dr. Burin Sukphisan.

Office of Industrial Economics(สำนักงานเศรษฐกิจอุตสาหกรรม)

The government agency organizing the palm oil and oleochemical forum.

Ministry of Industry(กระทรวงอุตสาหกรรม)ℹ️

The ministry overseeing the Office of Industrial Economics.

Place

Prince Palace Hotel(โรงแรมปริ๊นซ์ พาเลซ)

The venue for the PALM OIL × OLEOCHEMICAL EXECUTIVE FORUM 2026 – BANGKOK.