Thai Cabinet to Consider Fuel and Energy Conservation Package

4 July 2005

Bangkok Post. The Thai Energy Policy and Planning Office (EPPO) is proposing 12 new energy conservation measures including steeper excise taxes and higher annual registration fees on gas guzzling cars and SUVs.

Finance Minister Somkid Jatusripitak said heavy oil imports had increased the trade deficit. The Cabinet is to consider the package of measures next week.

Transportation-related proposals in the package include:

• The banning of the sale of all kinds of transportation fuel from 9pm-5am, except natural gas for vehicles and jet fuel.

• A higher excise tax on vehicles with engines with a displacement larger than 1.8 liters.

• A public awareness campaign to reduce use of diesel.

• Car makers to attach labels displaying an engine’s fuel efficiency.

• Increase property taxes on parking lots to force an increase in parking fees.

• Increase enforcement of emissions regulations.

• Provide incentives for vehicle owners to switch to natural gas.

Use of Thai gasohol (an E10 blend of 10% ethanol and 90% gasoline) increased to 1.4 million liters (370,000 US gallons) per day in June, up from January’s figure of 280,000 liters (74,000 US gallons) per day.

Passenger cars were also turning to gasohol, shooting up the daily demand to 1.4 million litres, a far cry from the January figure of 280,000 litres per day. More than 1,000 petrol stations nationwide were now selling gasohol which is less expensive than other fuels.

Other measures proposed in the package are focused on the reduction of electricity consumption.