E20 plan put on hold due to higher biofuel prices

A plan to make gasohol E20 the primary fuel for motorists in July has been postponed indefinitely because of higher biofuel prices, creating a financial burden for the Oil Fuel Fund.

The Oil Fuel Fund Administration Office (Offo), which subsidises gasohol and biodiesel, found prices of ethanol and palm oil-made methyl ester have increased for many years, exceeding even those for pure gasoline and diesel.

Officials want E20, a mix of 20% ethanol and 80% unleaded gasoline 95, to replace gasohol 91, making gasohol 95 an alternative fuel for drivers. Yet the plan has faced several delays.

Gasohol 91 and 95 have a 10% ethanol blend. They differ in their octane rating numbers.

Permanent energy secretary Kulit Sombatsiri said biofuels have lost their competitiveness in terms of production costs.

The reference price of ethanol, which is made from sugar and cassava, stood…