The Customs and Excise Departments should loosen strict rules hindering the export of ethanol if the country is to become an ethanol trading hub in Southeast Asia, the Energy Ministry says.
"Thailand is tops among Asean countries in terms of promoting the use of biodiesel and gasohol," said Kurujit Nakornthap, deputy permanent secretary for energy. "But more needs to be done to reduce the cost of ethanol exports that in turn will help promote the country as a regional trading centre."
Ethanol production in the country is now 3.5 million litres a day, exceeding domestic demand of 1.3 million litres.
Such overproduction is not good for the system, said Dr Kurujit, and the state has tried to increase domestic demand as well exports.
He said that while the excise tax levied on ethanol for fuel production is zero, the Finance Ministry has maintained strict control on concern that some would take advantage of the exemption and use ethanol to make alcoholic drinks instead.
"There are too many procedures at both the Customs and Excise Departments that are problematic and slow down exports," he said.
The Energy Ministry has also called on the private sector to establish large-scale ethanol storage at ports to cut the docking time for ships.
"Current large ethanol storage near docking areas is not enough, which means ships have to wait longer hours for ethanol trucks to arrive one by one, leading to high operating costs," said Dr Kurujit.
The government has been trying to increase gasohol consumption, partly by phasing out regular petrol from the Thai market starting in 2013.
But the subsidy on natural gas for vehicles (NGV) has made it more appealing to motorists, lessening the potential use of ethanol-based fuels.
"The best way [to counter that] is to allow prices to float in line with the market," Dr Kurujit said.
With oil prices rising, ethanol-based fuel or gasohol has become a choice for motorists. There are 4,000 retail stations for gasohol, with more than 900 also selling E20.
"If domestic gasohol usage can increase to 2 million litres a day, it will help form a foundation for growing gasohol trade with Thailand at the centre," Dr Kurujit said, expressing hope that the price of ethanol could one day be set in Bangkok.
The four types of ethanol-based fuel available are gasohol 95, gasohol 91, E20 and E85.
The national Renewable and Alternative Energy Development Plan aims to increase the use of alternative energy to 25% of the country's energy mix by 2021, when ethanol consumption is expected to be 9 million litres a day.
No comments:
Post a Comment