Bangkok--2 Dec--Ogilvy Public Relations Worldwide
The Energy Ministry continues gasohol promotion campaign targeting daily consumption of ethanol to reach 1.5 - 1.6 million liters, with increased number of E85 gas station and support carmakers in launching E85 compatible models.
Norkun Sittipong, Permanent Secretary for Energy Department said that “further to the Cabinet resolution to accept proposed measures for E85 gasohol including 3-percent reduction of excise tax for E85-compatible flexifuel vehicle with engine size of 1,700 to 3,000 CC., reduction of tariffs on imported finished cars with E85-fueled engines from 80 percent to 60 percent and tax exemption for 15 items of imported E-85 compatible auto part for 1 — 3 years. The relevant agencies will issue announcement of these tax incentives to take effect on January 1, 2011 as the latest. We believe this would be a major factor to promote the use of E-85 compatible vehicles in Thailand.”
More carmakers have expressed their interests to produce E85 compatible vehicles. Currently Mitsubishi and Volvo have started the production of E85 vehicles. GM and Honda will start E85 vehicle production by early next year. Toyota already set a clear policy on starting production line for E85 vehicle and is now planning suitable schedule. This helps boost the use of E85 compatible vehicles among Thai consumers. It is estimated that the daily consumption of ethanol will reach 1.5 — 1.6 million liters in 2011, from the current daily rate of 1.2 million liters. PTT Plc. and Bangchak Petroleum Plc. will also increase the number of E85 gas station to accommodate the increased consumption.
According to Norkun, another factor that motivates Thai people to turn to use E85 compatible vehicle is the increased global oil price trend in 2011. This will encourage people to switch to E85 as it helps save their fuel bills.
“The Energy Ministry is committed to promoting the use of alternative energy. The gasohol promotion is part of the 15-year Alternative Energy Development Plan, which targets an increase in use of alternative energy as a proportion of total use from the current 7 percent to 20 percent by 2022. By then, the oil import bill would be cut by about 460,000 million baht a year. This also helps promote energy crop cultivation in Thailand as part of achieving ‘land of renewable energy’ status,” added Norkun.
Issued on behalf of : Ministry of Energy
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