Bangchak may delay expanded sales of E20

Thailand’s Bangchak Petroleum PLC may delay expanded sales of E20 gasohol at its stations as high ethanol costs are causing it to lose money on gasohol sales, says President Anusorn Sangnimnuan. The company had planned to sell E20, which contains a 20% ethanol blend, at 200 stations by the end of this year, up from 120 now. Ethanol prices have risen to 25 baht (US$0.75), a liter from 20 baht (US$0.60) in June and 18 baht (US$0.54) in January, in line with the costs of molasses because of a global sugar supply shortage. “This would prompt oil companies to promote petrol rather than ethanol blends since the more gasohol they sell, the more money they lose,” said Anusorn. “If the ethanol price goes beyond 25 baht (US$0.75) per liter, we will delay the expansion plan for gasohol. The appropriate price of ethanol should be 20-21 baht (US$0.60-0.63), otherwise the business won’t be viable,” he said. Thailand’s third largest service-station operator no longer sells pure petrol. Aggressive marketing of the Bangchak brand as a green-fuel leader has made gasohol its best-selling product. (July 27, 2009)