The Oil Fuel Fund Office (Offo) expects to delay a plan to end the biofuel subsidy for two years to give sugar cane, cassava and palm famers more time to manage their output.
The government has spent part of the Oil Fuel Fund to subsidise prices of ethanol, made from sugar cane and cassava, as well as palm oil-derived methyl ester to promote use of environmentally friendly biofuels, reduce dependence on fossil fuels and help farmers increase revenue.
However, the 2019 Offo Act requires authorities to end the subsidy programme after biofuels become more popular among motorists without the need for further promotion, said Offo chief Wisak Watanasap.
The government is scheduled to stop subsidising biofuel prices on Sept 30, but the law authorises it to consider postponing the date for two years to 2024, with the possibility of another two-year delay to 2026.
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