TEMA against plan to reduce benzene-ethanol ratio to E10
The Thai Ethanol Manufacturing Association (TEMA) opposed Energy Ministry guidelines to reduce the benzene-ethanol ratio to E10 from E85 and E20 to relieve the expense burden on benzene users.
The opposition came after an Energy Policy and Planning Office discussion on Tuesday. However, the office has not reached a conclusion on the issue yet.
TEMA president Phiphat Sutiwisesak said he disagreed with the Energy Ministry guidelines, adding that the association would submit a letter to the ministry because it was unclear how the guidelines would benefit benzene users.
“The reduction in the benzene-ethanol ratio will impact the ethanol supply chain, starting from farmers to ethanol plants. If we use only E10, fuel demand will drop by up to 30 per cent from the current approximate 4 million litres per day,” he claimed.
Phiphat said Thailand’s ethanol price was 25.60 baht per litre due to cheap agricultural product prices.
He also urged the government to pay attention to the impact on farmers, claiming the US and Brazil have bought agricultural products at prices that are cheaper than in Thailand.
Phiphat added that it is up to the government whether the excise tax on benzene should be cut or not.