Thailand mulls gasoline phase-out

The Thai government said it is aiming to clear the country’s ethanol surplus via a controversial policy to phase out regular gasoline from the market. According to officials from the Energy Ministry, many motorists in the country prefer to use conventional fuel though their vehicles can also run on gasohol despite the government efforts to keep gasohol prices between 3.80 and 4.60 baht (US$0.11 and 0.13) per liter cheaper than petroleum-based gasoline.Thailand has excess ethanol production capacity, which can be alleviated by phasing out regular gasoline from the market. However, some motorists are against the move due to concerns over ethanol-blended gasoline’s compatibility with older engines. (July 2, 2009)