BANGKOK — The government is encouraging the use of B20 biodiesel as a more cost-effective alternative to conventional diesel, citing a price advantage of five baht per litre and potential cost savings for public transport operators, a government spokesperson said on Tuesday.

Thai Government Confirms Sufficient Fuel Supplies During Songkran Holiday

Ratchada Dhnadirek, vice minister attached to the Prime Minister’s Office, said B20 biodiesel — a blend of 20 percent palm oil and 80 percent conventional diesel — offers significant savings compared to standard B7 diesel, which contains a lower proportion of palm oil.

Economic and Strategic Benefits

Ms Ratchada said the promotion of B20 would also help boost demand for palm oil, improving revenues for oil palm farmers while reducing Thailand’s dependence on imported oil. She added that the fuel has the capacity to enhance Thailand’s energy security in the long term by utilizing domestically produced resources.

Thailand's Transport Minister orders to freeze transport fares & launches fuel subsidies amid global energy crisis — trucks, buses & delivery riders to receive 4–6 Baht/liter discounts through April. B20 diesel coming 5 Baht below market rate. Report price gouging: 1584. pic.twitter.com/A4bgHRSOYj

— PR Thai Government (@prdthailand) March 28, 2026

Limited Adoption Despite Lower Price

Despite its lower price, B20 biodiesel is currently available only at select service stations, as it has failed to gain widespread popularity among motorists and transport operators. Many remain concerned that the higher concentration of palm oil may not be suitable for their engines, with potential implications for performance and maintenance.

The Road Haulage Association recently stated that most truckers will not use B20, citing concerns that the fuel could lead to higher maintenance costs over time. Such concerns have limited uptake, even as the government seeks to promote the fuel as a cost-saving measure.

Balancing Promotion and Practicality

The government’s push for B20 reflects broader efforts to reduce fuel import reliance and support domestic agricultural sectors, particularly oil palm growers. However, convincing transport operators to adopt the fuel will likely require addressing concerns about engine compatibility and long-term vehicle maintenance costs.

Thai Government to Roll Out Fuel Relief Measures from April 1

For now, B20 remains a niche product in Thailand’s fuel landscape — cheaper at the pump but still viewed with caution by the very industries it is intended to support.

-Thailand News (TN)