Palm oil purchases by EGAT contribute to higher price

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The Electricity Generating Authority of Thailand (EGAT) is buying palm oil from farmers, pushing the price up by 1 baht per kilogram.

The director of Krabi power plant, operating under the supervision of EGAT, said that the plant has been buying a total of 15,000 tons of palm oil from local farmers since October. He said the plant uses up to 200 tons of oil to generate electricity.

As a result of recent purchases, he said the price of palm oil has risen from 23 baht to 24 baht per kilogram, which is very satisfactory.

According to the director, local farmers have been expressing wishes that the plant would continue to buy palm oil from them.

In response to the farmers’ request, the director said there would be consequences should EGAT continue to increase the amount of palm oil used to generate power. One of the consequences is that it could drive up the FT charge by 0.1 satang per unit, meaning electricity bills would be higher.