Clarifying plans to strike an energy balance
As Thailand accelerates its transition to a low-carbon economy, energy policymakers are revising the country's oil strategy to balance decarbonisation goals with energy security.
Thailand's oil strategy aims to balance energy security with carbon emissions reduction. A new 2026 plan seeks to expand biofuel use, modernise infrastructure and prepare for declining fossil fuel demand. Key changes include increased adoption of biofuels like biodiesel and ethanol, and sustainable aviation fuel (SAF) for aviation.
Authorities encourage motorists to switch to E20 (20% ethanol) and B20 (20% methyl ester) fuels. LNG, a cleaner-burning transition fuel, is also being promoted. Biofuel development is supported through the Oil Fuel Fund to increase public acceptance. Refineries are encouraged to become biorefineries using agricultural waste to produce fuels and chemicals.
Pipeline transport is prioritised for its low emissions and safety advantages. The government plans to shift excise tax collection from depots to terminals to improve cash flow. Fuel storage capacity is to be expanded in regional areas and border terminals to support net-zero goals and energy security. As demand is expected to peak this year and decline to half by 2050, Thailand will adjust by accelerating electric vehicle adoption and reducing reliance on gasoline and diesel.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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