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Poonpirom said after a discussion with Unica and ethanol exporter Colmex Group in Brazil, Thailand was found to be well positioned as a trade counter-party of Brazil.

Unica is a private association comprising 134 sugar and ethanol-making groups.

"Thailand is one of the world's major producers of sugar cane and tapioca. It is also a producer and user of ethanol, with the clear plans to use up to 85 per cent of ethanol with petrol," Poonpirom said.

Initially, the Energy Ministry will fully promote domestic ethanol consumption, he said.

Carmakers and oil retailers have already been warned of more measures ahead to promote E85 gasohol. The ministry will also push for flex-fuel vehicles that can run on pure ethanol or E100. A meeting with motorcycle manufacturers is planned soon, to address the manufacturing of bikes that can run on E100.

PTT president and CEO Prasert Bunsumpun said his company was mapping out a new retail business plan.

In it, most service stations will stop selling premium petrol by the end of this year and conventional petrol (91 octane) by the end of next year.

PTT will now focus on distributing E20 and E85 fuels. While all stations will sell E10 gasohol, major stations on highways along the natural-gas pipelines will sell NGV, as well.