Bangkok – The Excise Department is taking a tax measure to encourage the use of B20 biodiesel.
The Oil Fund, which will subsidize 2.18 baht a liter of biodiesel, is projected to use three billion baht a year for the subsidy.
The Excise Department will collect tax for B20 at 5.15 baht a liter. B20, a 20% palm-based biodiesel blended with 80% diesel, is to be available at gas stations from July 1.
The use of the new biodiesel blend is meant to absorb the surplus of palm oil, which surged to a surplus of 600,000 liters in May from 400,000-500,000 liters earlier this year. The lower B20 price is an incentive for consumers to use the biodiesel.