Cabinet approves 3-month tax cuts of 5.60 baht/litre for E20 and 5.50 baht/litre for B20
Thailand’s E20 and B20 tax cuts aim to ease fuel costs and support farmers, but pump prices awaited an Energy Ministry meeting on October 27.
- Thailand's Cabinet approved a three-month excise tax cut of 5.60 baht/litre for E20 gasohol and 5.50 baht/litre for B20 biodiesel.
- The measure aims to lower fuel costs for the public and transport operators while supporting farmers by increasing demand for biofuel crops.
- By creating a wider price gap with conventional fuels, the government hopes to incentivize more motorists to use E20 and B20.
- The tax reduction will be in effect for an initial three months, after which the government will review whether to extend or adjust it.
Thailand’s Cabinet approved three-month excise tax cuts of 5.60 baht per litre for E20 gasohol and 5.50 baht per litre for B20 biodiesel on October 27, 2026, Prime Minister Anutin Charnvirakul said at Government House.
Pump prices for E20 and B20 had yet to be finalised when Anutin announced the decision, with retail pricing details to be determined by the Energy Ministry.
Energy Ministry to determine E20 and B20 pump prices
Anutin said the Energy Ministry had received the approved tax reduction figures and was scheduled to meet on the afternoon of October 27 to determine retail pricing details. Energy Minister Akanat Promphan had been assigned to oversee the relevant work.
“We have reduced excise tax on E20 and B20 biodiesel to help farmers, transport operators and the general public. We would like everyone to consider using these two fuels more,” said Anutin.
Biofuel tax cuts aim to support crop prices
Anutin said the measure was intended to reduce energy costs while supporting agriculture because E20 and B20 contain biofuels made from farm produce. Greater use of the two fuels would increase demand for agricultural raw materials and help support crop prices.
“Once excise tax is reduced as approved by Cabinet, the price gap between E20 and B20 and conventional fuels will widen,” Anutin said. He said the stronger price incentive would encourage motorists and transport operators facing high fuel costs to consider switching.
The government will review the measure after the initial three months to decide whether to extend or adjust it, Anutin said.
Anutin urged the media to report the scope accurately, stressing that the tax reductions cover only E20 and B20, not all fuel grades.
