EGAT Plans to Adjust Biodiesel Blend Amid Rising Palm Oil Prices; Commerce Ministry Freezes Soybean Oil Price Hikes.

Bangkok: The Energy Policy Administration Committee (E.P.A.C.) is preparing to adjust the biodiesel blending ratios in response to a decrease in palm oil supply and a subsequent increase in its price. This comes as the Palm Oil Mill Association collaborates to curb crude palm oil (CPO) exports. Meanwhile, the Commerce Ministry has decided to suspend any hikes in soybean oil prices, with department stores agreeing to maintain vegetable oil prices. According to Thai News Agency, the Ministry of Energy reports that Deputy Prime Minister and Minister of Energy, Mr. Pirapan Salirathavibhaga, has instructed close monitoring of palm oil prices and production levels. Although farmers have benefited from increased income due to a rise in palm fruit prices to 9 baht per kilogram, drought conditions have reduced supply, elevating palm oil prices for consumption. Consequently, B100 biodiesel prices have surged from 42 baht to 46 baht per liter within a week. Each 1 baht increase impacts B7 biodiesel costs by approximate ly 4-5 satang, prompting the E.P.A.C., led by Mr. Pirapan, to consider reducing the diesel blend ratio from B7 to B5 to boost available oil for consumption. Mr. Pornchai Chirakulpaisan, Director of the Office of Policy and Strategy, highlighted that the NBTC is closely monitoring palm oil prices. He noted that palm oil currently accounts for nearly a third of the nation's biodiesel production, and price hikes affect the biodiesel pricing mechanism. Future discussions will focus on adjusting the oil fund mechanism to sustain the government's policy of capping B7 diesel prices at no more than 33 baht per liter. Recent adjustments have seen the diesel fund collection decrease from about 3 baht to 1.72 baht per liter. Mr. Kornnit Nonjui, Deputy Director-General of the Department of Internal Trade, disclosed that soybean oil producers have agreed to delay price increases. Despite monitoring cost factors, no significant changes justify a price hike. Producers and retailers nationwide have been urged to offer prom otions to ease consumer burdens. The palm oil situation has prompted Mr. Witthayakorn Maneenet, Inspector-General and Spokesperson of the Ministry of Commerce, to engage with the Palm Oil Mill and Refinery Associations to manage palm oil stocks appropriately for both consumption and energy needs. The associations have agreed to cease CPO exports until production stabilizes, anticipated by January 2025. Meanwhile, the Department of Internal Trade has coordinated with retailers to maintain stable prices for consumer goods, particularly bottled vegetable oil. Retailers have committed to delaying price adjustments and organizing promotions to mitigate public burden. Reports from the Department of Internal Trade indicate that surveys of retail and wholesale stores show stable prices for soybean and palm oils, with ongoing promotional activities benefiting consumers. However, the private sector noted a significant increase in palm oil prices, exceeding 10 baht per liter, with some soybean oil prices expected to rise by 1 baht per liter in November.