Thailand moves to boost ethanol demand

Faced with rising ethanol stocks, Thailand’s energy ministry announced measures in March aimed at boosting demand for the alternative fuel, by further widening the price gap between regular gasoline and 10% ethanol-blended gasohol. The ministry said it would lower the contribution from gasohol 95 and gasohol 91 to the government’s oil fund by 50 satang per liter (US$0.01/liter) to 1 baht (US$0.03). The lower contribution would widen the price discount per liter between 95 RON gasoline and gasohol 95 to 2.50 baht (US$0.07) and between 91 RON gasoline and gasohol 91 to 2 baht (US$0.06). Gasohol demand in Thailand, which grew exponentially when it was first introduced in 2004, has been relatively flat at 3.5 million liters per day since early 2006. (March 19, 2007)