Octane-95 sales won't be scrapped

The Energy Ministry will not scrap octane-95 petrol distribution despite ethanol producers' requests, saying there are over 200,000 vehicles that cannot be driven by ethanol-mixed petrol or so-called gasohol.
Pornchai Rujiprapha, permanent secretary for energy, said yesterday that octane-95 distribution would continue to assist car owners who cannot switch to gasohol. However, he indicated that the number of octane-95 gas stations could be reduced by 2 to 3 per cent, or about 100 stations, as more outlets focus more on gasohol sales, while the ministry would promote gasohol in order to increase ethanol consumption. His comments followed a demand from ethanol producers that sales of premium petrol be scrapped altogether in order to boost demand for ethanol, of which output is reaching 800,000 barrels a day. Producers said seven ethanol companies had a combined production capacity of more than one million litres per day, while daily demand was only 358,000 litres. They also threatened to stop production if there was no measure to promote ethanol use. "We have delayed the decision to scrap sales of premium petrol, partly because of the uncertainties in output. Our engineers, after inspection, said the actual output did not match the reported figures. We are not sure if output is as high as they said. To us, when ethanol does not leave the factory, that means there is no actual production," Pornchai said. Pornchai said gasohol had become more popular due to the Oil Fund subsidy, which widens the gap between octane-95 petrol and gasohol-95 to Bt1.80 per litre. The octane-91 and gasohol-91 gap is Bt1.50. Gasohol use has consequently expanded to 380,000 litres a day, against 350,000 litres last year. The ministry will also promote gasohol next month, which should boost ethanol consumption, Pornchai said. Yesterday, the ministry announced it was to cooperate with the Interior Ministry to develop the community energy project, aiming to encourage 80 communities this year to participate in local energy planning. Energy Minister Piyasvasti Amranand said an energy-planning training programme would be conducted in communities to educate them about efficient consumption. The project is expected to lead to energy savings worth Bt1.6 billion per annum. The project commemorates His Majesty the King's 80th birthday this year.
Energy Reporter
The Nation
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