Energy Minister Wannarat Charn-nukul said after the committee meeting on May Day that the original pricing structure, which base on the Brazil export price, would be reinstated later.
He said that the new formula followed the economic downturn which led to lower consumption of oil and ethanol. Since January 13, there has been no ethanol transactions in Brazil and there is no reference price for the pricing formula in Thailand. Moreover, the reference price would not reflect the actual cost, and this affects local ethanol producers, which could disturb the national policy on alternative energy.
Meanwhile, the committee endorsed a Bt357 million budget to support the flex fuel vehicle (FFV) project under the Alternative Energy Development and Efficiency Department's supervision. The department will later announce the regulations on the 3 per cent subsidy on FFV excise tax. The Oil Fund will shoulder the subsidy.
Moreover, the committee also endorsed the Oil Fund's subsidy to gasohol E85 from Bt5.70 per litre to
Bt8 per litre, to promote the sale of this ethanol-based fuel. Based on the E86 sale volume of 12,000 litres in March, the monthly subsidy will rise by Bt27,600 per month to Bt96,000 per month. This took effect on May 2.