Bangkok: Thailand’s ethanol producers are increasing output as demand for gasohol E20 rises, in line with the government’s efforts to reduce reliance on imported oil, according to a report by Bangkok Post.
The government is promoting E20—a blend of gasoline and 20% ethanol—as a key fuel option at a time when global oil prices are rising and concerns persist over supply disruptions through the Strait of Hormuz amid the Israel-US conflict with Iran.
Industry officials say wider use of E20 could help keep fuel prices stable. Kittisak Wattanavekin, honorary president of the Thai Ethanol Manufacturing Association, said the fuel can help balance retail prices during periods of volatility in global crude markets.
To encourage its adoption, the government is keeping E20 cheaper than gasohol 91 and 95, which contain only 10% ethanol. Caretaker energy minister Auttapol Rerkpiboon said efforts are underway to widen the price gap to about 5 baht per litre to make the fuel more attractive to motorists.
Although E20 already costs less than the other two fuel types, officials believe a bigger price difference will lead to faster adoption.
Thailand currently consumes around 3.5 million litres of ethanol per day, compared with more than 30 million litres of gasoline. Industry estimates suggest that if E20 becomes the main fuel, ethanol demand could exceed 6 million litres per day, helping to reduce oil imports.
Ethanol in the country is produced mainly from sugarcane-based molasses and cassava. Thailand has more than 11 million rai under sugarcane cultivation, producing about 90 million tonnes of cane and 10 million tonnes of sugar each year, indicating strong potential for expanding biofuel production.
Sureeyot Khowsurat, chairwoman of the Tapioca Ethanol Association, said manufacturers are ready to support the policy. Thailand has 28 ethanol plants with a combined capacity of 7.2 million litres per day, of which 50–60% remains unused.
The push for E20 is also expected to increase demand for cassava used in ethanol production to about 6 million tonnes a year. Currently, around 90% of cassava output is used for starch and chips, while only a small share—about 2 to 3 million tonnes—goes into ethanol production.
