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Diesel fuel can be capped under 30 baht/litre for Thailand
Thailand’s Energy Policy and Planning office (EPPO) decided to instruct oil refineries to produce just one type of diesel fuel (B7), from December 2021 until next March 2022, to lower the price to around 28 baht/litre, and oil traders to maintain the marketing fee at 1.40 baht/litre. The measures are to ease the impact on truck operators as oil prices rise globally.
EPPO Director-General Wattanapong Kurovat, said also that the committee, chaired by Energy Minister Supattanapong Punmeechaow, also decided the retail price at pump will remain at no more than 30 baht/litre.
B7 diesel fuel is mixed with only 7% biodiesel or palm oil. Currently, there are three types of diesel fuel, B7, B10 and B20, but B7 is the most popular among truckers.
Wattanapong explained that the Oil Fund’s contribution to the diesel fund, coupled with the capping of the marketing fee will help reduce the price of diesel at the petrol station.
He pointed out that the reduction in the proportion of biodiesel in diesel fuel is due to increasing prices of palm oil, currently estimated at 46.88 baht/litre, which will raise the price of diesel by 1-2 baht/litre.
With lower biodiesel content, the B7 price can be reduced by around 50-80 satang per litre. Subsidies from the Oil Fund will also be cut about 4 billion baht to 3.8 billion baht per month.
Wattanapong said that all parties were consulted before the Energy Police Administration Committee arrived at the decision, adding that the committee will explore means to help affected refiners.
Truckers, from the Land Transport Federation of Thailand, are demanding that the price of diesel fuel be capped at 25 baht/litre, otherwise they may have to increase cargo transport charges.
Canaf Fuels has utilized the opportunity to enter the Thai market to accommodate the decisions made by EPPO and the Energy Minister, to lessen the burden on the country’s economy, to stock, trade and refine crude oil, but instead by switching feedstock supply to BLCO for domestic, industrial, transport use and export markets as BLCO product specifications hold similarity with the spec on diesel B7 and international standard diesel consumption. BLCO shall have lower refining and wholesale market price cost, less waste with greater wins on quantity & quality that can be sustained and the price of diesel fuel can be capped under 30 baht/litre based on the volatilized global market related prices that will affect the Thai economy.
At Canaf Fuels, we believe that all trucks fuelling savings per litre or gallon reflects hugely on your transport department’s annual fuel bill. So, by entering the market space, Canaf Fuels shall have a big impact by lower fuel cost which will impact the Thai economy for everyone as it will keep the food prices affordable, and the public consumers satisfied in the land of smiles...
Different Types of Diesel Fuel Use & Export
Once deemed too sluggish for your everyday passenger car, diesel fuel now powers high-speed, sophisticated vehicles that merge efficiency with dynamic driving capability. Diesel’s come a long way since its humble origins and has advanced into different type for different purposes, and not all of them are derived from petroleum.
These are the different types to keep your eye out for.
Petroleum diesel
Petroleum diesel, or fossil diesel, is the most common type of fuel, used in freight trucks, trains, buses and farm and construction vehicles. Many new passenger vehicles are powered by petroleum diesel too. Its components are derived from the fractional distillation of crude oil at temperatures between 200 – 350 degrees Celsius at atmospheric pressure. The result sees a mixture of carbon chains, containing approximately 8 – 20 carbon atoms per molecule.
Synthetic diesel
The desire to find long-term low-carbon fuel alternatives has seen the development of synthetic diesel. It can be produced from any carbonaceous material which is not limited to biomass, biogas, natural gas and coal. Once the natural substance is gasified and purified, it undergoes the Fischer-Tropsch process which is essentially a series of chemical reactions that transforms a combination of carbon monoxide and hydrogen into a hybrid substance called hydrocarbons. This type of diesel has been commended for its near-zero sulphur content, reducing overall emissions.
Biodiesel
Biodiesel is an alternative renewable fuel source to petroleum-derived diesel that is made from vegetable oils, animal fats or recycled restaurant grease. As of 2016, soybean oil was the main ingredient of approximately 55% of the total feedstock used to make biodiesel in the US, followed by canola and corn oil. In its purest form, biodiesel is referred to as B100, yet can be appropriately blended with petroleum diesel depending on the temperature the fuel will be used in. Many fuel equipment manufacturers have expressed their concerns with biodiesel as it can corrode fuel injection components, increase blockages and cause pump seizures.
Hydrogenated oils and fats
While similar to synthetic diesel, this category of diesel involves converting the triglycerides (a chemical compound known as ester which is derived from glycerol and fatty acids) found in vegetable oils and animal fats into alkanes with a process that refines and hydrates the substance.
Dimethyl ether (DME)
DME has the potential to be a renewable fuel. It’s a clean-burning, non-toxic fuel that boasts a high cetane value and discreet combustion. Its low-cost system coupled with low soot and reduced NOx emissions could offer a great alternative when meeting carbon reduction goals.
Bulk Fuel Delivery
Bulk Fuel from Canaf Fuels are the experts when it comes to bulk diesel refuelling for your plant, equipment, and vehicles. From on-site refuelling to safe fuel storage to fleet management systems, our capabilities will help your business reduce downtime and save money in the long-term which can be re-invested into your business.
Whether it’s an agriculture, marine, mining or construction operation, there can be considerable benefits to managing an on-site refuelling facility.
A safe, well-managed fuel management or storage system can improve operational control, reduce vehicle off-site down time, and generate positive Return on Investment (ROI).
Bulk Fuel from Canaf Fuels delivers bulk fuel anywhere in Thailand, with tankers strategically placed across for on-site refuelling. Our modern fleet of LNG powered fuel tanker trucks come in a range of capacities and are ideal for refuelling on-site storage tanks. Each is operated and supported by an experienced team that delivers to Thailand Standards.
Canaf’s bulk fuel can be used independently or as part of a complete on-site fuel management solution, using a combination of fuel storage tanks and dispensing equipment to suit your needs.
For safe, reliable, and flexible bulk fuel delivery, contact Bulk Fuel at Canaf Fuels today.