Thailand removes restriction on E20

Thailand’s Excise Department will remove a key restriction to allow greater flexibility in producing and marketing 20% ethanol-blended gasoline (E20), said Metta Buntherngsuk, director-general of the Energy Business Department. E20 qualifies for a tax waiver under existing regulations only if a business is able to offer it on the market, a feat no firm has yet accomplished. With the restriction removed, E20 can be offered in small quantities to test the market and encourage automakers to produce vehicles that can run on the fuel. The excise tax on E20-capable vehicles is 20%, lower than the 30% levied on cars with engines smaller than 2,000cc. E20 will be available in the market in 2009. The government held back on E20 because of a lack of available materials for the fuel and the potential economic impacts of tax cuts. Officials said that the fuel must be ”widely available for sale in service stations” for producers to qualify for tax relief. Once the restriction is removed, Metta believes car companies will respond quickly by accelerating the introduction of E20 technology. (June 5, 2007)