BANGKOK, Thailand – The government is accelerating the adoption of B20 diesel as a strategic energy alternative to lower costs in the transport and industrial sectors.
Assistant Minister to the Prime Minister’s Office Rachada Dhnadirek stated on March 30, 2026, that B20 diesel is a domestically produced fuel blended with 20 percent palm-based biodiesel. Vehicles compatible with B20 can use it like conventional diesel, benefiting from lower fuel costs and greater reliance on local energy sources.
To encourage adoption, the Fuel Fund Executive Committee has introduced a price subsidy, keeping B20 about 5 Baht per liter cheaper than standard B7 diesel. This provides financial relief for the logistics and industrial sectors, which face high energy costs. By reducing these expenses, the government aims to limit retail price increases and benefit the public.
Major fuel retailers are expanding B20 distribution to improve accessibility. Bangchak Corporation has started sales at its Phra Khanong depot, and PTT Oil and Retail Business has started sales at its Songkhla and Saraburi depots. Shell is expected to begin distribution in early April.
The initiative is also expected to boost demand for palm oil, a key domestic crop, helping stabilize prices and generate income for Thai farmers. It will also reduce long-term reliance on imported energy.
The Assistant Minister reaffirmed the government’s commitment to balancing energy affordability for the public and businesses. Promoting B20 remains a key measure to strengthen economic resilience, support agricultural income, and ensure sustainable national energy security. (NNT)
