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Thailand doubles palm oil blend in diesel, expects rise in domestic palm oil prices

Posted on : 14 Sep, 2015

 

Thailand is the world's third-largest palm oil producer and the country is facing problems of palm oil oversupply. In order to use up the excess palm oil, the country doubled the volume of palm oil blend into diesel in April this year. The move is expected to increase domestic palm oil prices too.

 

The new palm oil blend proportion has marked an increase to 7 percent from the previous 3.5 percent.

 

Thailand’s energy ministry expects the change to increase biodiesel consumption to around 3.7 million litres a day from 2.2 million litres. The country had a total diesel demand of approximately 60 million litres a day (around 378,000 barrels per day) in March, 2015.

 

In March 2015, the palm oil stocks stood at around 170,000 tonnes, well above the government's targeted storage levels of 135,000 tonnes whereas in January, the stocks had slid to around 110,000 tonnes.

 

7th Palm Oil & Rubber Summit on 19-21 October, 2015 in Krabi, Thailand will explore more on above and other vital trends in Asia’s palm oil industry.

 

Contact Ms. Hafizah at hafizah@cmtsp.com.sg or call +65 6346 9218 for more details.

 

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