Petrol phase-out targets ethanol glut

The government aims to clear the ethanol surplus with a controversial policy to phase out regular petrol from the market, a senior Energy Ministry official says. In 2002, the Thaksin Shinawatra administration granted licences to ethanol producers as part of its policy to replace pure petrol with alternative fuels. Current capacity is 2 million litres a day, but is set to increase by another 800,000 litres a day this year. Premium petrol is now priced about 9.90 to 10.80 baht per litre more than gasohol, depending on the level of the state Oil Fund and excise tax. Most vehicles can run on gasohol, said the senior official. But many motorists still prefer to use pure petrol, even though the agency has worked to keep gasohol between 3.80 and 4.60 baht per litre cheaper than regular petrol. “Some motorists never change their mind as they believe that pure petrol can boost efficiency of engines, while gasohol could lower its efficiency.” Adisak Rohitasune, senior vice-president of Asian Honda Motor Co, the motorcycle market leader, said all four-stroke models could run on gasohol, but most two-stroke motorcycles could not. (July 2, 2009)