BANGKOK, 10 April 2015, – The Department of Energy Business (DOEB) is increasing the ratio of palm oil in bio-diedel from 3.5% to 7% beginning on April 16th .
Director-General of the DOEB Witoon Kulcharoenwirat said the move would help absorb the oversupply of palm oil in the market, in accordance with the subcommittee for oil palm and palm oil management’s decision, which is expected to lower the national crude palm oil stock to 170,000 tons.
By increasing the ratio of palm oil from 3.5% to 7%, changing the bio-diesel formula from B3 to B7, the consumption of palm oil would increase by 70,000 tons a month.
According to the Director-General, the Electricity Generating Authority of Thailand has been asked to use more palm oil in producing electricity in its power plant in Krabi. Furthermore, the department has also urged the private sector to purchase raw palm oil at least at the current price tag.
Farmers, meanwhile, have been asked to refrain from harvesting their palm fruit prematurely.