Gasohol 95 contribution cut by Bt1.20
The Energy Policy Administration Committee on Thursday approved a Bt1.20 cut in gasohol 95 contribution to the Oil Fund, to promote gasohol consumption.
As the contribution is cut to Bt0.20 per litre, gasohol 95 will be priced cheaper than 91-octane petrol.
Gasohol 95 and 91-octane petrol are retailed at Bt36.37 a litre today. Chevron (Thai) Co Ltd, the operator of Caltex fuel stations, will tomorrow cut gasohol 95 retail price by Bt1.28 per litre.
This is expected to increase daily ethanol consumption to 1.14 million litres. In September, ethanol consumption was 1.08 million litres. However, this cut will boost the Oil Fund's total gasohol subsidies to Bt256 million a month, from Bt103 million.
The ethanol pricing formula will also be changed, benchmarked against actual cost. The new price will be announced on the first date of every month, starting from January 2012.
Gasohol 95 is 95-octane petrol with 10 per cent mixture of ethanol. Ethanol is the replacement of MTBE.
