Diesel: Blending Fuel in Thailand Pt.2

As we have discussed blending of gasoline in the previous blog. Today, I would like to touchpoint also on blending of another motor fuel, diesel. With gasoline using "ethanol" as their biofuel component, diesel on the other hand uses biodiesel. Biodiesel is usually made from vegetable oils like palm oil. Historically, price of palm oil had been below the price of diesel, which prompts government across the globe to substitute this component in place of the actual fossil fuel with an aim to keep the diesel price at gas station more economical for motorists.

However, over the course of recent decades, the reality could not get father than the expectation. Price of palm of has shot up significantly. Thus, it results in regulations to cutting down the percentage of biodiesel blending into diesel. From 20% to 15% to 10% to 7% to 5%, in the case of Thailand.

Within the oil & gas industry, many speculates that, if the price trend of biodiesel continues to increase in upcoming years, it is only a matter of time that we will see "B0" or 100% diesel fuel without any biodiesel blend being sold at gas station in Thailand.