Thailand to cut B3 sales’ contribution to oil fund

Thailand’s Energy Policy Committee will sharply reduce the portion of sales of B3 (3% biodiesel blend) that is allocated to the government’s oil fund to 0.15 baht (US$0.01) a liter, from 0.65 baht (US$0.02), Energy Minister Wannarat Charnnukul said. The move is designed to lower the retail price of diesel fuel to help curb inflationary pressures, which are expected to accelerate next year as economic growth speeds up. The oil fund currently has 28.67 billion baht (US$955.83 million) in cash, which will be used for future subsidies. (December 8, 2010)